Under 55 Homeowners FAQ

No. Reverse mortgages in Canada are only available to homeowners who are 55 years of age or older. This is a requirement set by all reverse mortgage lenders in Canada. The age requirement ensures borrowers are in or approaching retirement and have built substantial equity in their homes.

If you're under 55, you have several excellent options to access your home equity: Home Equity Lines of Credit (HELOC) offer flexible borrowing with lower interest rates; Home Equity Loans provide lump-sum funding with fixed rates; and Mortgage Refinancing allows you to access equity while potentially lowering your rate or adjusting terms.

A Home Equity Line of Credit (HELOC) is a flexible credit line secured by your home. You can borrow as needed up to your approved limit and only pay interest on what you use. HELOCs typically offer lower interest rates than credit cards or personal loans, making them ideal for ongoing expenses or projects.

With a HELOC or home equity loan, you can typically borrow up to 80% of your home's value minus any existing mortgage balance. The exact amount depends on your credit score, income, existing debts, and the lender's requirements. Our advisors can help you determine your borrowing capacity.

Yes. Unlike reverse mortgages, HELOCs and home equity loans require regular monthly payments. With a HELOC, you typically pay interest-only on the amount borrowed during the draw period. With a home equity loan, you make fixed monthly payments of principal and interest over the loan term.

A HELOC is a revolving credit line—you can borrow, repay, and borrow again up to your limit, similar to a credit card. A home equity loan is a one-time lump sum with a fixed interest rate and set repayment schedule. HELOCs offer flexibility, while home equity loans provide predictable payments.

Interest rates for HELOCs and home equity loans are typically lower than reverse mortgages because you make monthly payments. HELOC rates are usually variable and tied to the prime rate, while home equity loans often offer fixed rates. Your actual rate depends on your credit score, income, and market conditions.

You can use home equity funds for almost anything: home renovations, debt consolidation, education expenses, starting a business, emergency expenses, or major purchases. Many homeowners use equity to consolidate high-interest debt, which can significantly reduce monthly payments.

Refinancing means replacing your current mortgage with a new one, often for a higher amount. You can access the difference in cash. Refinancing also allows you to potentially secure a lower interest rate, change from variable to fixed rates (or vice versa), or adjust your mortgage term.

Lenders typically look at your credit score (usually 650+), stable income and employment, debt-to-income ratio, and available home equity. You'll need to prove you can afford the monthly payments. Our advisors will assess your situation and help you understand which options you qualify for.

Yes, there are typically costs such as appraisal fees, legal fees, and potentially lender fees. Refinancing may also include prepayment penalties on your existing mortgage. However, these costs are often lower than for reverse mortgages, and we'll provide a clear breakdown of all fees upfront.

Once you reach 55, you become eligible for a reverse mortgage, which eliminates monthly mortgage payments. Some homeowners transition from HELOCs or home equity loans to reverse mortgages in retirement to reduce monthly expenses. We can help you plan for this transition if it makes sense for your situation.