What is a reverse mortgage?
A reverse mortgage is a financial product for Canadian homeowners aged 55 and older that lets you generate income from your home equity without selling your home or making monthly payments.
How it works, in a nutshell
The lender advances you funds secured against your home. Interest accrues on the outstanding balance, but you don't have to repay it until you sell, move, or the last remaining homeowner leaves the property.
You remain the owner of your home and continue to pay property taxes and insurance, and to maintain the property in good condition.
Comparing your options
Requires regular monthly payments. Income is usually verified. Suited to purchases or refinancing.
No required monthly payments. Available from age 55. Funds come from your home equity.
A line of credit secured against your home. Usually requires monthly interest payments and proof of income.
Who is a reverse mortgage right for?
- Ontario homeowners aged 55 or older
- Those who want extra retirement income without selling their home
- Families who need funds to pay off debt, renovate, or help loved ones
- Anyone who'd rather avoid monthly loan payments