CHIP reverse mortgage rates are relatively “sticky.” They don’t change as often as regular mortgage rates.
That makes HOMEQ’s recent rate cuts all the more notable.
On Friday it slashed its 1-year CHIP rate by 75 basis points to 4.50%. This is a special promo meant to run until May 31.
Three- and five-year CHIP rates also fell, to 5.50% (down 0.15%) and 5.75% (down 0.20%) respectively.
These rate reductions were reportedly inspired by recent improvements in HOMEQ’s GIC funding costs and by competitive pressures from the conventional mortgage market.
Rob McLister, CMT
CHIP’s are still tricky. In my personal opinion if a client can qualify — give them a HELOC.
Definitely, and so would the client. But “if” is a big word here. And with changes to HELOCs coming, qualifying for a HELOC may be that much more difficult for a 65+ year old on a fixed pension with a HUGE asset base in their home being (almost) paid off.