Reverse Mortgages in Canada
How reverse mortgages work for Canadians 55+, including the trade-offs.
How a reverse mortgage works
A reverse mortgage lets Canadians 55+ access up to 55% of their home's value tax-free with no required monthly payments. Interest accrues on the balance, and the loan is repaid when you sell the home, move out permanently, or pass away. You retain ownership the entire time.
Who qualifies
Both you and any registered owner must be 55+. Your home must be your primary residence and worth enough to support the loan (most reverse mortgage providers require minimum $250,000–$300,000 appraised value).
How much you can access
The amount available depends on your age, your home's appraised value, location, property type, and interest rates. Older borrowers and higher-value homes unlock larger amounts — typically 25%–55% of value.
Costs and considerations
Reverse mortgages cost more than traditional mortgages — typically 1–2% above standard mortgage rates. Setup costs (appraisal, legal, administration) usually run $1,500–$3,000. The lender's equity guarantee means you'll never owe more than the home is worth at sale.
Alternatives to consider first
Before a reverse mortgage, we explore: HELOCs (lower cost if you can service interest), downsizing (preserves more wealth), traditional refinancing (if income supports it), and family loans. Reverse mortgages shine when you want to stay in the home indefinitely with no monthly payment pressure.
Have questions about your situation?
Every mortgage file has its own story. A 15-minute call with Jay is enough to know your real options.