Reverse Mortgage

A reverse mortgage isn't a one-size-fits-all product, and it isn't the right answer for every homeowner. When it does fit, it can be transformative—funding retirement income, in-home care, or a long-overdue renovation without monthly payment stress.

How it works

No monthly payments

Interest accrues against the loan; nothing is paid until you sell, move out, or pass away.

You retain ownership

Title stays in your name. The lender holds a registered mortgage just like a conventional one.

Up to 55% of home value

Subject to age, location, and home type—most clients access 25–45%.

Tax-free proceeds

Funds aren't treated as income, so they don't affect OAS or GIS clawbacks.

When it makes sense

You're 55+, you have substantial equity but limited cash flow, and you want to age in place. The math works best when the alternative is selling your home or carrying a HELOC you can't service comfortably.

When it doesn't

If you plan to move within five years, a HELOC or downsizing usually wins. We'll model both scenarios with you side by side—not just push the product.

Frequently asked

Will my heirs lose the house?

No. After the home is sold, any equity remaining after the mortgage payoff goes to your estate. The CHIP no-negative-equity guarantee means your estate never owes more than the home is worth.

Are reverse mortgages expensive?

They carry higher rates than conventional mortgages—typically 0.5–1.5% above prime mortgage rates. The compounding interest is the real cost; we model 5, 10, and 20-year scenarios so you understand what you're committing to.

Who provides reverse mortgages in Canada?

HomeEquity Bank (CHIP) and Equitable Bank are the two providers. We compare both for you on every file.