As Canadian homeowners reach retirement, many find themselves “house rich but cash poor.” A reverse mortgage offers a way to unlock some of your home’s equity—without giving up ownership or moving out. It’s a financial solution that allows you to turn a portion of your home’s value into tax-free income, giving you more flexibility and peace of mind in retirement.

What Is a Reverse Mortgage?

A reverse mortgage is a loan available to homeowners aged 55 or older that allows you to borrow against the value of your home.

Unlike a traditional mortgage, there are no monthly payments.Instead, the loan is repaid when you sell your home, move out, or pass away.

You remain the owner of your home, and the title stays in your name.

The funds you receive are tax-free and can be used however you choose—whether that’s covering monthly bills,

helping family members, traveling, or renovating your home for aging in place.

Who Qualifies

To be eligible for a reverse mortgage in Canada, you must meet a few basic criteria:

• Be at least 55 years old

• Own your home (it must be your primary residence)

• Have a significant amount of home equity

• If you have a spouse, both applicants must be at least 55

The older you are and the more valuable your home, the more you may qualify to receive.

Example: Reverse Mortgage on a $800,000 Home

Let’s say you're 70 years old and your home is appraised at $800,000. Based on your age and the property value, you could be eligible to borrow up to 45%–50% of your home’s value, depending on the lender and your location.

Estimated reverse mortgage amount:

• Home value: $800,000
• Eligible loan (approx. 48%): $384,000
• Interest rate (example only): 6.99%
• No monthly payments required

This means you could potentially access $384,000 in tax-free funds, without making any monthly repayments. That money could help cover living expenses, clear debts, or be set aside for future care needs—all while you remain in your home.

Keep in mind: the loan balance grows over time as interest accumulates, and it’s repaid when the home is sold or your estate settles the account.

What Can the Funds Be Used For?

There are no restrictions on how you use the money. Some common uses include:

• Supplementing retirement income
• Paying off existing mortgages or high-interest debt
• Covering in-home care or medical expenses
• Helping adult children with home purchases
• Renovating to improve comfort or safety
• Simply enjoying a more comfortable retirement

Things to Consider Before Applying

While reverse mortgages can offer freedom and flexibility, they’re not for everyone. It’s important to understand the trade-offs:

The amount you owe increases over time due to interest

This reduces the equity in your home, which means less inheritance for your heirs.

However, reverse mortgage providers in Canada offer a No Negative Equity Guarantee, ensuring that

you or your estate will never owe more than the home is worth when sold.

You’ll also need to maintain your home and keep up with property taxes and insurance.

And before the mortgage is approved, you’ll be required to obtain independent legal advice to ensure full understanding of the terms.

Is a Reverse Mortgage Right for You?

Every situation is unique. A reverse mortgage can be a powerful tool for some

homeowners—but it’s not the right fit for everyone. If you're wondering whether this might work for your retirement goals,

I'm here to help you weigh the pros and cons. Together, we can explore your options and connect you with trusted reverse mortgage specialists if needed.

​​​​​​​Alex Price - level 1 mortgage agent.
Search Mortgage Corp. and Brokerage #12652

Documents and Conditions for Reverse Mortgage 

What You’ll Need

For each person on title:

• T1 Generals from the last 2 tax years (full copies)
• Notice of Assessments for the last 2 tax years
• T4 slips for all income sources from the latest year
• Latest property tax bill
• 2 pieces of government‑issued photo ID
• Latest mortgage statement(s)

If you rent out part of your home:

• Copy of the lease
• 3 months of bank statements showing rent deposits

If you own other properties:

• Latest property tax statement(s) for those properties
• Latest mortgage statement(s)
• Lease agreement(s)
• 3 months of bank statements showing rent deposits

Products Available:

• Standard Mortgage – lump sum advance
• HELOC (Home Equity Line of Credit) – borrow as needed
• Monthly Advances – steady, pay‑cheque‑style payments

Conditions:

• All homeowners should be 55 and older
• You have equity in your home(s)