FAQ for Homeowners Over 55
Everything you need to know about reverse mortgages
You must be 55 years or older and own your home in Canada. The amount you can borrow depends on your age, home value, and location. Both you and any co-borrower must be at least 55 years old.
Yes. You keep full ownership of your home and can stay as long as you like. Your name stays on the title. A reverse mortgage is simply a loan secured against your property—you remain the legal owner.
No. With a reverse mortgage, you do not make monthly mortgage payments. The loan is paid back when you sell your home, move out permanently, or pass away. You must continue to pay property taxes, home insurance, and maintain the property.
This depends on your age, home value, and location. Generally, you may access up to 55% of your home's value. The older you are, the more you can typically borrow. Use our calculator to get an estimate based on your specific situation.
No. There is no cost to you for the home appraisal. The lender covers the appraisal cost as part of the reverse mortgage process. The appraisal determines your home's current market value.
You can sell your home at any time. When you sell, the reverse mortgage is paid off from the sale proceeds. Any remaining money is yours to keep. There are no prepayment penalties for selling your home.
No. The funds you receive from a reverse mortgage are tax-free. This is because the money is considered a loan, not income. You can use the funds however you wish without tax implications.
The reverse mortgage becomes due and payable when you sell your home, permanently move out of the home, or the last borrower passes away. At that time, you or your heirs can choose to repay the loan and keep the home, or sell the home to repay the loan. Any remaining equity belongs to you or your estate.
Yes. Your heirs have options when you pass away. They can repay the reverse mortgage and keep the home, or sell the home and keep any remaining equity after the loan is paid off. Your heirs are never responsible for more than the home's fair market value.
Interest rates for reverse mortgages are typically higher than traditional mortgages because there are no monthly payments required. Rates can be fixed or variable. Your licensed advisor will provide you with current rates and help you choose the best option for your situation.
Yes, you can move. If you sell your current home and buy a new one, you'll need to repay the reverse mortgage from the sale proceeds. You may be able to apply for a new reverse mortgage on your new home if it qualifies and you still meet the age requirements.
Generally, reverse mortgage funds do not affect Old Age Security (OAS) or Canada Pension Plan (CPP) benefits. However, if you receive income-tested benefits like Guaranteed Income Supplement (GIS), the funds could affect your eligibility. We recommend consulting with a financial advisor about your specific situation.
For your protection, two independent lawyers are required to close a reverse mortgage in Canada. One lawyer represents you (the borrower) and ensures you understand the terms and that your interests are protected. The second lawyer represents the lender. This dual representation requirement is a safeguard that ensures the process is conducted fairly and that you receive independent legal advice before committing to the mortgage.
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