reverse Mortgage
Unlocking your home’s value can provide significant financial flexibility during retirement.
What is a reverse Mortgage?
A reverse mortgage lets Canadian homeowners aged 55+ turn a portion of their home equity into tax-free cash, without selling their home. You stay in your home and retain ownership — the loan is repaid when you sell, move out, or pass away.
Key Points
- You can typically borrow up to 55% of your home’s value.
- Funds can be received as a lump sum, regular payments, or a combination.
- No monthly mortgage payments are required.
- The money doesn’t affect OAS or GIS benefits.
- The interest accumulates over time and is added to the loan balance.
Pros
✅ Access home equity without selling
✅ Stay in your home
✅ Flexible payout options
✅ Tax-free funds
Cons
❌ Higher interest rates than regular mortgages or HELOCs
❌ Home equity decreases over time
❌ Less inheritance for your estate
❌ Fees for setup, appraisal, and legal costs
Things To Consider
- Compare with other options like downsizing or a HELOC.
- Discuss with family, a financial advisor, or mortgage broker.
- Understand repayment conditions — usually due when you sell, move, or pass away.