Reverse Mortgage

A reverse mortgage is a specialized lending solution that allows eligible Canadian homeowners aged 55 and older to access a portion of the equity built in their home without selling the property.

This type of financing can provide tax-free cash flow while allowing homeowners to continue living in their primary residence and maintain ownership of their home.

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Who May Qualify?

To be eligible for a reverse mortgage in Canada, applicants generally must:

• be at least 55 years of age

• own a home in Canada

• use the property as their primary residence

• demonstrate the ability to maintain ongoing property expenses such as:

  • property taxes

  • home insurance

  • home maintenance costs

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How Much Can You Borrow?

Eligible homeowners may be able to borrow up to approximately 55%–60% of their home’s appraised value, depending on factors such as:

• age of the borrower(s)

• property location

• home value

• lender guidelines

In general, the amount available increases with the age of the homeowner.

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Reverse Mortgage Approval Process

Reverse mortgages are available through select Canadian lenders specializing in home equity lending solutions.

The approval process is typically based primarily on:

• home equity

• property value

• borrower age

Traditional income qualification requirements are often more flexible compared to conventional mortgages.

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Flexible Access to Funds

Depending on the lender and product selected, funds may be received as:

• a lump-sum payment

• scheduled monthly advances

• a line of credit

• a combination of these options

This flexibility can help support different retirement and financial planning needs.

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Repayment

A reverse mortgage generally becomes due when:

• the home is sold

• the homeowner permanently moves out

• the last borrower passes away

The repayment amount includes:

• the original loan balance

• accrued interest

• applicable fees

No regular monthly mortgage payments are typically required unless voluntarily chosen.

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Interest Rates and Costs

Reverse mortgages often carry higher interest rates than traditional mortgages due to their deferred repayment structure.

Available options may include:

• fixed interest rates

• variable interest rates

• different term structures

Additional costs may include:

• appraisal fees

• legal fees

• administrative or setup fees

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Maintain Ownership of Your Home

With a reverse mortgage:

• you remain the legal owner of your home

• you continue to benefit from any future property value appreciation

• you remain responsible for:

  • property taxes

  • insurance

  • maintenance and upkeep

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Why Consider a Reverse Mortgage?

A reverse mortgage may be suitable for homeowners seeking to access home equity while remaining in their home and improving cash flow flexibility during retirement.

Funds are commonly used for:

• supplementing retirement income

• healthcare or caregiving expenses

• home renovations

• debt consolidation

• lifestyle and financial planning needs

Because reverse mortgages can affect long-term estate value and future equity, professional mortgage and financial advice is strongly recommended before proceeding.