Posted on by Annie de la Chevrotiere

Reverse Mortgage – Bloom SafeRate

🏡 Understanding Reverse Mortgages.

A reverse mortgage is a specialized loan secured against the value of your home. It provides you with the ability to release the capital in your home without having to sell or move. The money you receive is tax-free and can be used for any purpose you wish. It can also be used as financing when purchasing a new property.

Key Features & How a Reverse Mortgage Works

  • No Mandatory Payments: You are not required to make monthly principal payments. You can choose to pay the interest only each month, or no payments at all.
  • Interest Accrual: The interest accrues and is added to the original loan balance over time. As a result, the outstanding balance grows as interest is accumulated.
  • Repayment Trigger: The loan is repaid when the homeowner:
      • Moves out of the home.
      • Sells the home.
      • Passes away.

    🌟 Lender Spotlight: Bloom Finance Company – SafeRate Reverse Mortgage

    Bloom Finance Company’s product, SafeRate, is a relatively new offering that provides distinct features designed for predictability and flexibility.

    SafeRate Key Features

    Feature Details
    Interest Rate Lifetime fixed rate. As of November 10th, 2026, the rate is 6.69%.
    Prepayments You are allowed to make annual lump sum payments of up to 10% of the balance.
    Interest-Only Option You can set up a schedule for full or partial interest-only payments. This option has no setup fees, is arranged via PAD, and can be started or stopped as needed.
    Right to Move (Downsizing) You can downsize and port your Loan-to-Value (LTV) ratio up to 90% LTV on the new purchase. There is no penalty or fee on any balance repaid over the ported amount.
    Right to Move (Upsizing) You can port your existing balance with no penalty or fees.

    Set Up Costs

    The associated costs for setting up the SafeRate mortgage are approximately:
        • Appraisal: $350
        • Processing Fee (Includes lender legal, registration, title insurance): $1,650
        • Legal / Independent Legal Advice (Your legal fees): Approximately $1,000 to $1,500

    Compassionate Penalty Waivers

    Bloom’s SafeRate offers enhanced penalty waivers for sensitive life events:
        • Borrower Death: No penalty to payout within 3 years of the death of the first borrower.
        • Long-Term Care: No penalty if the last borrower moves into long-term care.
        • Estate Settlement: No penalty on the death of the last borrower, and the family is granted 365 days (double the industry standard) to settle the estate.

    Early Payout Penalty Structure

    If you need to pay off the mortgage early outside of a compassionate waiver event:
    Repayment Year Penalty Structure
    Year 1 8%
    Year 2 7%
    Year 3 6%
    Year 4 5%
    Year 5 4%
    Years 6 through 10 3 months’ interest

    📞 Post-Funding Customer Service

    For customer service after the funding of your mortgage:
        • A statement for the mortgage is issued annually.
        • You can contact them directly by calling their toll-free number: 1-866-882-5666, option #2.
It is important to note that even though reverse mortgages do not have traditional qualifying criteria, applications must still be underwritten to review property eligibility, sufficient property equity, and overall suitability for this type of financing. If you have any questions, please reach out to Annie directly to answer any questions you may have.