Real Mortgage Associates Inc | License # 10464
Real Retirement, Real Freedom
What Is a Reverse Mortgage?
Reverse Mortgage is a retirement-focused way to access home equity — without monthly mortgage payments
A reverse mortgage is a specialized home financing option available to Canadian homeowners aged 55 and older. It allows eligible homeowners to convert a portion of their home’s value into tax-free cash, while continuing to live in and own their home.
Unlike traditional mortgages or lines of credit, a reverse mortgage does not require regular monthly payments. Instead, interest accrues over time and is added to the loan balance.
At TheReverseMortgage.ca, we view a reverse mortgage not as a loan of last resort, but as a financial planning tool that can support retirement cash flow when used appropriately and with a full understanding of how it works.
How It Works
You must be at least 55 years old
You may access up to 55% of your home’s appraised value (amount depends on age, property type, and location)
You remain on title and retain full ownership of your home
No monthly mortgage payments are required
Interest accrues and is added to the balance over time
Repayment typically occurs when the home is sold or the estate is settled
Funds can generally be received:
As a lump sum
As regular monthly payments
Or as a combination of both
In most cases, the funds received are tax-free and do not affect government benefits such as OAS or GIS.
Who Typically Uses a Reverse Mortgage?
Important Considerations
A retirement-focused way to access home equity — without monthly mortgage payments
While reverse mortgages can provide flexibility, they are not suitable for everyone. Factors such as future housing plans, estate considerations, alternative financing options, and long-term costs should be carefully reviewed.
Understanding how interest accrues, how repayment works, and how the mortgage fits into a broader retirement plan is essential before proceeding.