A reverse mortgage lets Canadian homeowners 55 and older access part of their home equity — without selling and without required monthly payments.
How it works
You can typically borrow up to 55% of your home's value, depending on your age, location and the property. You keep ownership of your home. The loan, plus interest, is repaid when you sell, move out, or the last borrower passes away.
Common uses
Supplementing retirement income, home renovations, paying off debt, or helping family.
Things to consider
Interest rates are higher than on a regular mortgage, and the balance grows over time, which reduces the equity left in your home. Independent legal advice is required.
Is it right for you or your parents? Let's review the pros, cons and alternatives together.