Reverse Mortgage Canada: Empowering Your Retirement with Home Equity

The Reverse Mortgage for Canadians 55 and over

Thousands of 55+ Canadians are beginning to realize just how wealthy they are, when they consider the equity they’ve built in their homes

  • Access up to 55% of your home value in tax-free cash!
  • Keep the home you love
  • No monthly mortgage payments

WE’RE HERE TO HELP 

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What is a Reverse Mortgage in Canada?

A reverse mortgage is a financial tool that allows Canadian homeowners aged 55+ to convert a portion of their home’s equity into tax-free cash. Unlike traditional mortgages, there are no monthly payments. Repayment only occurs when the home is sold, you move out permanently, or pass away. For more details, visit the Financial Consumer Agency of Canada.

Benefits of a Reverse Mortgage


  • No Monthly Payments: Stay in your home without the burden of monthly mortgage payments.
  • Access Up to 55% of Your Home’s Value: Unlock your home’s value while still living in it.
  • Remain Homeowner: Continue to own your home while using your equity to support your lifestyle.

Reverse mortgages provide flexibility and financial security for homeowners looking to leverage their home equity during retirement.

Why Consider a Reverse Mortgage?

  • With more than 21.8% of Canadians approaching retirement, many face challenges with limited pension income and rising costs. A reverse mortgage offers a solution to supplement income without the need to sell or downsize, making it an attractive option for financial stability in retirement.

Reverse Mortgage Statistics in Canada (2023)

Graph: Reverse Mortgage Growth in Canada (2018-2023)

The demand for reverse mortgages continues to grow. In 2023, Canada saw total reverse mortgage debt reach $6.3 billion, marking a 30% increase from the previous year.
Reverse Mortgage Growth In Canada

How Does a Reverse Mortgage Work in Canada?

A reverse mortgage enables homeowners to receive cash based on a percentage of their home’s appraised value. The payment options include:

  1. Lump Sum Payments: Receive all the funds upfront.
  2. Scheduled Advances: Get periodic payments over time, similar to an income stream.
  3. Combination: A mix of lump sum and periodic payments.

For detailed information, consult the Government of Canada’s reverse mortgage guide.

Reverse Mortgage Qualification Criteria in Canada

To qualify for a reverse mortgage in Canada, you must meet the following requirements:

  1. You must be 55 years or older.
  2. Your home must be your primary residence.
  3. You can borrow up to 55% of your home’s appraised value, depending on your age, the value of your home, and its location.

Reverse Mortgage vs. Other Financial Options

ProductReverse MortgageHELOC (Home Equity Line of Credit)Personal Loan
Repayment TermsWhen the home is soldMonthly repaymentsMonthly repayments
Interest RatesHigher than regular ratesLower variable ratesVariable rates
Monthly PaymentsNoneRequiredRequired
Income RequirementsNoYesYes

A reverse mortgage offers a unique advantage: no monthly payments, allowing you to maintain cash flow without financial strain.

Reverse Mortgage Interest Rates in Canada 2024

Reverse mortgage rates tend to be about 2% higher than traditional mortgage rates, ranging from 7% to 10%. These higher rates reflect the risk for lenders, as no payments are required until the loan is repaid.

To stay informed on mortgage rate trends, visit the Bank of Canada’s website.

You can also check the latest reverse mortgage rates by visiting one of Canada’s top rate comparison sites, Rates4u.

Who Should Consider a Reverse Mortgage?