A Reverse Mortgage allows Canadian homeowners aged 55 and older to access tax-free cash from their home equity without selling their home or making monthly mortgage payments. The loan amount depends on factors like the home’s value, location, and the homeowner's age. The loan is repaid when the homeowner sells the property, moves out, or passes away.

To qualify, you must:

• Be 55 years or older (applies to both homeowners if jointly owned).

• Own a home in Canada, which must be your primary residence.

• Have sufficient home equity based on the property’s value and location.

The amount you can borrow depends on several factors, including:

• Your age (older homeowners may qualify for more).

• Your home’s value and location.

• The amount of equity you have in your home. Use our Reverse Mortgage Calculator to get an estimate of how much you qualify for.

• Interest rates for Reverse Mortgages are typically higher than traditional mortgages but lower than unsecured loans or credit cards. The rate depends on market conditions and the type of Reverse Mortgage product you choose.

You can use the funds for any purpose, including:

• Supplementing retirement income.

• Covering medical expenses or home renovations.

• Paying off existing debts.

• Enjoying travel and other lifestyle expenses.

No, there are no monthly mortgage payments required. The loan is repaid only when you sell your home, move out permanently, or pass away. Interest accrues over time and is added to the loan balance.

Yes, you retain full ownership of your home. As long as you meet the loan conditions (such as maintaining the home and paying property taxes), you can continue living in your home without concerns.

The loan is repaid when:

• The home is sold.

• The homeowner moves into long-term care.

• The homeowner passes away. At that point, the loan balance (including accrued interest) is repaid from the proceeds of the home sale. Any remaining equity belongs to the homeowner or their heirs.

No, you cannot lose your home as long as you comply with the loan terms, which include:

• Keeping your property well-maintained.

• Paying your property taxes and home insurance.

Since interest accumulates over time, the amount left for heirs may be reduced. However, homeowners typically retain a significant portion of their home equity, ensuring an inheritance for their beneficiaries.