Mortgage Solutions for Retirees

A reverse mortgage is a loan that allows homeowners aged 55+ to access equity in their home without selling it or making monthly payments. Instead of paying the lender, the lender pays you—either in a lump sum, regular payments, or a line of credit. The loan is repaid when you sell your home, move out, or pass away. It's a flexible way to access funds while staying in your home.

No, funds from a reverse mortgage are generally not considered taxable income, as you're borrowing against your own equity rather than earning income. However, we recommend consulting with a tax professional to understand how this may apply to your specific situation, especially if it affects benefits like Old Age Security or other income-tested benefits.

In Canada, you must be at least 55 years old to qualify for a reverse mortgage. The younger you are, the less you can typically borrow, as lenders calculate based on your expected lifespan. There's no maximum age limit, so seniors of any age can apply.

Reverse mortgages generally don't directly affect most benefits, but they can impact income-tested benefits like Old Age Security (OAS) or Guaranteed Income Supplement (GIS) depending on how funds are used. We strongly recommend consulting with a financial advisor or Service Canada before proceeding to understand the specific impact on your benefits.

If you move to a long-term care facility, you typically have time to sell your home or arrange repayment of the reverse mortgage. The loan becomes due when you sell the home or pass away. Your heirs can sell the home to pay off the mortgage, or they can refinance if they wish to keep it. We recommend discussing this scenario with us to understand your options.