Services · 05 · Reverse mortgage
Stay in your home and use its value.
For homeowners 55 and over: access part of your home's value with no required monthly mortgage payment. It has real costs, so we look at the alternatives side by side.
05
What it is
A reverse mortgage is a loan secured by your home, available when every owner on title is 55 or older. You receive the money as a lump sum or in instalments and make no regular payments. Interest is added to the balance, and the loan is repaid when you sell, move out, or the last borrower passes away.
Because interest compounds and the rate is higher than on a regular mortgage, the balance grows and the equity left for you or your estate shrinks. It suits some situations very well and others not at all.
Who it is for
- Retirees who want to stay in their home and need more monthly income
- Owners 55 and over whose income does not qualify for a regular refinance
- Parents who want to help their children now rather than through an estate
- Owners with a mortgage or debts they can no longer carry comfortably
How it works
Conversation
Your goals, your family's view, and the alternatives: downsizing, a line of credit, a regular refinance.
Estimate
How much is available depends on your age, the home's value and its location.
Appraisal and independent legal advice
A lawyer who acts only for you explains the contract before you sign.
Funds
Any existing mortgage is paid out first. The rest is yours, as a lump sum or over time.
Documents to have ready
A starting list. Your own checklist is built after the first conversation.
- Photo ID for every owner on title
- Property tax bill
- Statement for any existing mortgage or line of credit
- Home insurance policy
- Power of attorney documents, if someone acts for you
Common questions
How much can I get?
Up to about 55% of the home's appraised value with the main Canadian providers, and usually less. The older you are, the higher the share.
Do I still own my home?
Yes. You stay on title. You must keep paying property tax and insurance and keep the home in good repair.
Can I end up owing more than the home is worth?
Canadian reverse mortgage lenders commit that, if you meet the terms of the mortgage, the amount owed will not exceed the fair market value of the home when it is sold.
What does it cost?
A higher interest rate than a regular mortgage, plus appraisal, legal and set-up fees, and a penalty if you repay in the first years. I give you the full cost in writing before you decide.
Talk it through with Hamed.
Eight questions, about a minute. Hamed reviews your answers and calls you, usually the same business day.