Reverse Mortgages in Canada | Access Your Home's Tax-Free Equity

Are you a homeowner aged 55 or older looking to supplement your retirement income, fund home renovations, or help your family? A reverse mortgage allows you to access the wealth you've built up in your home without having to sell or make monthly mortgage payments.

As a specialist in senior equity solutions, I can guide you through both traditional and private reverse mortgage options to find the right fit for your financial goals.

What is a Reverse Mortgage?

A reverse mortgage is a loan that allows you to convert a portion of your home equity into tax-free cash. Unlike a traditional mortgage, you do not need to make regular payments. The loan, plus interest, is repaid when you sell the home, move out, or the last borrower passes away. You always maintain ownership and title to your home.

Traditional Reverse Mortgage 

This is the most common reverse mortgage product in Canada, offered through Home Equity Bank and some other lenders and available to homeowners 55 and older. Mortgage can be advanced as lump sum or partial draws and even option of credit card added to the mortgage for your convenience. 

Key Features:

  • Age Requirement: You must be 55 or older.

  • No Monthly Payments: You are not required to make any payments as long as you live in the home, but there is an option to pay interest only payments.

  • Tax-Free Cash: The money you receive is not considered taxable income.

  • You Retain Ownership: You remain the owner of your home.

  • No Negative Equity Guarantee: You will never owe more than the fair market value of your home when the loan is repaid.

How Much Can You Access?
The amount depends on your age, your home’s value and location, and the type of home you own. Generally, you can access up to 55% of your home's appraised value.

A Flexible Alternative: The Private Reverse Mortgage 

What if you need to access more equity, or you don't meet the age requirement? For clients who need a more flexible solution, I can arrange a Private Reverse Mortgage.

This product is ideal for homeowners of any age who want to access a significant amount of equity without the strict rules of a traditional reverse mortgage.

Key Features of a Private Reverse Mortgage:

  • Access Up to 60% of Your Equity: Get a larger lump sum, with loans up to $1.5 million.

  • No Age Restrictions: Available to homeowners of any age.

  • No Monthly Payments: Like a traditional reverse mortgage, there is no requirement for monthly repayments.

  • Fully Open 1-5 Year Fixed Term: Enjoy the stability of a fixed interest rate with the flexibility to repay the loan at any time without penalty.

  • Limited Income Requirements: The focus is on your home's equity. Minimum credit score 550.

  • No Prepayment Penalties.

Traditional vs. Private Reverse Mortgage: A Quick Comparison

FeatureTraditional Reverse MortgagePrivate Reverse Mortgage
Minimum Age 55+ Any Age
Max. Loan Amount Up to ~55% of home value Up to 60% of home value (to $1.5M)
Monthly Payments Not Required Not Required
Prepayment Penalty May Apply None
Best For Seniors 55+ seeking standard solution Homeowners of any age needing more equity or flexibility

Common Uses for a Reverse Mortgage

  • Supplement Retirement Income: Boost your cash flow without impacting government benefits like OAS or GIS.

  • Pay Off Existing Debt: Eliminate monthly mortgage, credit card, or loan payments.

  • Fund Home Renovations: Make your home more accessible or update it for your future needs.

  • Help Family Members: Provide a financial gift to children or grandchildren for a down payment or education.

  • Travel and Leisure: Fund the retirement lifestyle you've dreamed of.

Is a Reverse Mortgage Right for You?

A reverse mortgage can be a powerful financial tool, but it's important to understand the long-term implications. As your broker, I will ensure you have all the information you need, including how the interest compounds over time and the impact on your home equity.

I will help you:

  • Determine how much tax-free cash you could access.

  • Compare the costs and benefits of traditional and private reverse mortgages.

  • Understand all the terms and conditions clearly.

Unlock Your Home's Financial Freedom

You've worked hard to pay for your home. Now, let it work for you. Whether you're 55 and planning your retirement or 45 and looking for a smart financial strategy, there is a reverse mortgage solution for you.

Contact me today for a free, no-obligation consultation to calculate your available equity and explore your options.