Plain Facts

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The Plain Facts

What is a Reverse Mortgage?

It's a financial product that allows you to access the equity in your home and convert it into tax-free money.

Reverse mortgages in Canada are unique. They are loans secured by a home's appraised value. The homeowner has the option of making no monthly payments and deferring the payback of the loan to the time when he/she no longer occupies the home.

What are the Two Types of Reverse Mortgages in Canada?

There are two types of reverse mortgages in Canada:

1. Lump Sum Reverse Mortgage: With this type, you can choose to receive your cash as a lump sum (all of it upfront), or as a lump sum with additional advances over time.

2. Equity Pension Reverse Mortgage: This type is like a pension. You can choose to receive your cash in either monthly installments, or in quarterly installments (every 3 months), to suit your needs. You can also start the Equity Pension with a lump sum amount of your choice.

Who Qualifies For A Reverse Mortgage in Canada?
  • Homeowners in Canada
  • You must be 55 years old (or older)
  • Your home must remain your primary residence

“We needed to be able to manage our lives without the family supporting us. The reverse mortgage means having a life.” - Gordon & Aubrey A

Purpose Of Funds (How Can You Use The Cash?)

What Are The Options To Receive the Tax-Free Cash?  Option 1: Lump Sum Reverse Mortgage

What Are The Options To Receive the Tax-Free Cash?  Option 2: Equity Pension Reverse Mortgage

How Can There Be No Monthly Payments Required?

Who Will Own My Home?

Are Reverse Mortgages Safe?

How Much Money Can I Receive?

Find Out How Much Your Home Will Qualify For

What About Repayment Of The Loan?

When Does The Loan End?

What Happens If My Home Decreases in Value?

What Happens If My Home Increases in Value?

Will A Reverse Mortgage Wipe Out My Equity?

Aren't The Interest Rates High?

How Can Rising Home Values Offset the Reverse Mortgage Interest Rate ?

Will Reverse Mortgage Funds Affect My Government Benefits?

What If I Already Have An Existing Mortgage?

Is Downsizing Better Than Getting A Reverse Mortgage?

Most Common Alternatives to Reverse Mortgages

Is A Reverse Mortgage A Loan Of Last Resort?

What Are The Fees With A Reverse Mortgage?

“With a line of credit, I would have to make payments to the bank every month. I didn’t want to do that, I didn’t want this to affect my income.” - Sandra H