Tax Free Income

How much money can the homeowner get?

Depending on your age, the maximum amount of cash you may qualify to receive is 55% of your home's value. For example, if you own a home worth $500,000, then you could potentially receive up to $275,000.

What can I do with the mortgage funds, the cash?

You can use it as you please. Here are some things people with reverse mortgages currently do with their money: (1) they renovate their home, (2) they help the people they love, such as children, grandchildren, friends, etc., (3) they pay off debts, (4) they take care of unexpected expenses, (5) they enjoy the retirement they deserve, (6) they travel, go on vacations, go on cruises, (7) they purchase vacation properties.

It's really up to you, the homeowner.

Does the homeowner have to make payments?

No. There are no required monthly payments with a reverse mortgage in Canada. As long as the homeowner lives in the home, no payments are needed. The mortgage is only required to be paid back when you choose to move, or sell your home.

You always have the option (not requirement by any means) to make advance interest payments in case you wish to reduce the amount owing at the end of the reverse mortgage.

How does the homeowner receive the money?

There are options for you to choose from. You can receive all the money you’re eligible for in one lump sum advance, or you can take some now and more later.

Another popular option is receiving planned advances, such as monthly, for example. It's your home equity that the reverse mortgage is freeing up for you, and you can access it the way you want.

What determines how much money the homeowner gets?

Three factors determine how much money you can get.

The first factor is your age (and, if you have a spouse, your spouse's age). The older you both are, the more money you can receive.

The second factor is the type of home (for example: detached, condo, townhouse, etc.) and its location. If you own a home in a city, you typically qualify for more money than if you own a home in the countryside or in a rural community.

The third factor is your home's current appraised value - how much it's worth, today. You can get an estimate right now of how much money you could get by clicking HERE.  

Will a reverse mortgage affect my Canadian government benefits?


The cash from a reverse mortgage is tax-free income. Any government benefits you receive, such as Canada Pension Plan (CPP), Old Age Security (OAS), or Guaranteed Income Supplement (GIS) will NOT be affected.

How is a reverse m​​​​ortgage repaid?

A reverse mortgage is repaid when the last surviving homeowner (the last borrower of the reverse mortgage) either leaves the home or passes away. Usually the home is sold and the money is used to pay back the reverse mortgage, and then the remaining cash is paid to you or to your Estate.

If your Estate chooses to keep the home, the people involved can pay back the reverse mortgage loan by using/obtaining financing of their choice.