Reverse Mortgages: What They Are, How They Help, and Why They’re Not as Scary as You Think
If you’re 55 or older and own your home, you might have heard about reverse mortgages—but maybe you’ve also heard mixed messages about what they are. Some people worry they’re a “last resort,” while others wonder if they’re just too good to be true.
The truth? A reverse mortgage can be a smart financial tool—not just for retirees trying to make ends meet, but for anyone looking to unlock the value of their home while continuing to live in it.
Let’s break it down together.
What is a Reverse Mortgage?
A reverse mortgage lets Canadian homeowners aged 55+ access up to 55% of their home’s value in tax-free funds—with no monthly mortgage payments. You keep living in your home, and the loan is paid back when you move out, sell, or pass away.
It’s a way to tap into the equity you’ve built up, without having to sell or downsize.
Why Would Someone Get a Reverse Mortgage?
Here are just a few reasons clients choose to go this route:
To supplement retirement income and help with rising living costs
To pay off debts or an existing mortgage without dipping into savings
To help adult children or grandchildren with a down payment so they can buy their first home
To fund home renovations or healthcare expenses
Or simply to have a financial cushion in place—for peace of mind
Common Misconceptions (and the Truth!)
“The bank takes my house.”
Nope! You stay on title and remain the homeowner, just like with any other mortgage.
“I’ll leave nothing behind for my kids.”
In most cases, homeowners still keep significant equity in their home. Plus, rising home values often mean there’s still an inheritance left—even after the loan is repaid.
“Reverse mortgages are only for people in financial trouble.”
Not at all. Many clients use them proactively—to stay comfortable, invest in their family's future, or just give themselves more flexibility in retirement.
Help Your Family Today—Not Just Someday
One of the most meaningful ways people use reverse mortgages is to help their children or grandchildren get into the housing market now, instead of waiting to pass down an inheritance years from now.
With rising home prices and tougher qualification rules, it’s harder than ever for young people to buy a home. A reverse mortgage can allow you to gift a down payment while you’re still here to enjoy the impact it makes.
We call this “early inheritance”—and it can be life-changing for everyone involved.
Is a Reverse Mortgage Right for You?
It depends. A reverse mortgage isn’t the right fit for everyone, but for many Canadians 55 and older, it offers a safe and flexible way to access the equity they’ve built over a lifetime—without sacrificing their home, lifestyle, or peace of mind.
Whether you want to stay in your home comfortably, help your kids buy theirs, or just feel a bit more secure financially, I’m here to help you understand your options.
