Access Your Home Equity — No Monthly Payments

A reverse mortgage lets homeowners 55+ borrow against their home's equity without monthly payments — the loan is repaid when you sell, move, or pass away. It can supplement retirement income or cover major expenses while you stay in your home. I can walk you through whether it fits your situation and how it compares to other equity options.

Each unlocks home equity differently: a reverse mortgage requires no monthly payments but accrues interest over time, a HELOC needs regular payments but usually costs less long-term, and downsizing frees up equity outright but means moving. The right fit depends on your income, health, and how long you plan to stay in your home — worth a conversation to compare real numbers.

Yes. You retain full ownership and title to your home, and can live there as long as you like as long as it remains your primary residence and property taxes and insurance stay up to date. The loan is only repaid when you sell, move out permanently, or pass away.

The loan balance, including accrued interest, is repaid from the proceeds of the home's sale. Any remaining equity goes to you or your estate. Most reverse mortgages in Canada come with a no-negative-equity guarantee, so you or your estate will never owe more than the fair market value of the home.

You (and any co-owner on title) need to be 55 or older, and the home needs to be your primary residence in Canada — meaning you live there at least six months of the year. Most lenders also expect the property to be worth at least $250,000. There's no income, employment, or credit score requirement, which is what makes reverse mortgages accessible to retirees who wouldn't qualify for a traditional loan.

Typically up to 55% of your home's appraised value, depending on your age, the property's location and condition, and current interest rates — the older you are, the more you generally qualify for. If you own the home with a spouse, the amount is based on the younger spouse's age. I can give you a realistic estimate based on your specific home and situation.

Expect a lender setup fee (roughly $995-$1,795), an appraisal ($300-$600), and independent legal advice, which is required by law before you sign (roughly $300-$700) — typically $2,300-$3,000 all in. Most of this is deducted from your proceeds rather than paid out of pocket. Worth knowing: interest rates on reverse mortgages usually run higher than a traditional mortgage or HELOC, since there are no monthly payments required.

No. Reverse mortgage funds are a loan, not income, so they're not taxable and don't count against OAS or GIS eligibility — which matters a lot for GIS recipients, since regular income can reduce that benefit. The one caveat: if you invest the funds and they earn interest, dividends, or capital gains, that investment income is taxable and could affect income-tested benefits.

Yes — no lender can refuse repayment, in part or in full, at any time. Many allow up to 10% of the balance to be prepaid each year with no penalty, or let you make voluntary interest payments to slow the balance from growing. Prepayment charges can apply outside those allowances, but they're waived entirely when the last borrower passes away, and often reduced if you move into a retirement or care home.

Both owners on title need to be 55+ to be co-borrowers on the reverse mortgage itself. A younger spouse can still be on title, but not as a borrower — which carries real risk, since the loan can become due if the borrowing spouse passes away or moves into long-term care. If this applies to you, it's worth talking through how to structure things before you commit.