Reverse Mortgage in Canada

Turn your home equity into tax free cash, and stay in your home

If you are 55 or older, a reverse mortgage lets you access the equity in your home as tax free cash, with no monthly payments and no need to move or sell. We compare Canada's leading providers to find the right fit for you.

  • Access up to 55% of your home value, tax free
  • No monthly mortgage payments required
  • Keep full ownership of your home
  • Does not affect your OAS or GIS benefits
  • Income and credit are not the deciding factors
Want to talk it through? Call 1-855-242-7732
Reverse mortgage for Canadian homeowners age 55 and older
The basics

What is a reverse mortgage?

A reverse mortgage is a loan secured against the value of your home. It lets homeowners aged 55 and older unlock the equity they have built without having to sell or move. You get to stay in the home and community you love.

Unlike a regular mortgage, you make no monthly payments. Instead, interest is added to the balance over time, and the loan is repaid only when you sell the home, move out permanently, or the last homeowner passes away. Throughout, you keep the title and full ownership of your property.

There is no need to worry about your credit score or income. A reverse mortgage looks mainly at your age, your home and its value, so many people who were declined elsewhere still qualify. In just a few minutes we can help you find out how much tax free cash you could access.

How much you can unlock

How much can a reverse mortgage give you?

You can access up to 55% of your home value. The exact amount depends on your age, your home value, its location and the property type. As a rule, the older you are, the higher the share you can unlock.

Your home valueAccessible equity
Up to 55%

The remaining equity stays in your home. On average, homeowners still have more than half of their home value left after the loan is repaid.

Age 55 to 64
15% to 30%

A typical share of home value at younger qualifying ages, subject to lender and appraisal.

Age 65 to 74
25% to 45%

The share you can access generally rises through your late sixties and early seventies.

Age 75 and up
Up to 55%

Older homeowners can reach the maximum share of their home value.

For example. A 70 year old with a home worth $600,000 might access roughly $180,000 to $240,000 in tax free cash. A 55 year old with the same home would typically access less. The best way to know your number is a quick, no obligation estimate.

The benefits

Why homeowners choose a reverse mortgage

For the right person, a reverse mortgage can ease financial pressure while letting you stay put. Here is what makes it appealing.

Tax free cash

The money is not taxable income, so it does not affect your OAS or GIS benefits.

No monthly payments

You make no regular payments while you live in the home. Interest is simply added to the balance.

You keep your home

You retain title and full ownership and stay in your home and community for as long as you choose.

No negative equity guarantee

You will never owe more than your home is worth when it is sold, as long as you meet the loan terms.

Flexible payout

Take a lump sum, steady monthly income, or a mix, and draw more later if you need it.

Easier to qualify

Approval leans on your age and home, not your income or credit, so many people qualify with ease.

The money is yours to use as you wish: pay off debts, improve your home, handle unexpected costs, help your children or grandchildren, boost your retirement income, or make a special trip or purchase.

Compare your options

Canada's two leading reverse mortgage programs

Most reverse mortgages in Canada come from two providers. Rather than steer you to one, we compare both against your age, your property and how you plan to use the funds, since a small difference in rate compounds a lot over many years.

HomeEquity Bank CHIP

The most established option

  • Canada's longest running reverse mortgage
  • Widest coverage of property types and locations
  • Lump sum plus scheduled advances and income options
Equitable Bank

Often competitive on rate

  • A newer program that can be sharp on pricing
  • Flexible advance options for qualifying borrowers
  • Strong for select urban markets and property types

Both programs include a no negative equity guarantee and require independent legal advice before you sign, which protects you. We lay both offers side by side and explain every fee in plain language.

Getting started

Who qualifies, and how it works

Reverse mortgages have a short and friendly list of requirements. Because approval is not driven by income or credit, the process is often simpler than a traditional mortgage.

  • You and every owner on title are age 55 or older
  • The home is your primary residence in Canada
  • Your home meets a minimum value, often around $250,000
  • You keep property taxes, insurance and upkeep current
Mortgage specialist explaining reverse mortgage eligibility to a couple in Canada

How the process works

Free estimate

We review your age, home and goals and estimate how much you could access.

Appraisal

A home appraisal confirms your market value and your maximum amount.

Your offer

We compare providers and bring you the option that fits best.

Legal advice

You get independent legal advice, a required step that protects you.

Funds

Sign, and your tax free funds are made available to you.

Weigh it honestly

Is a reverse mortgage right for you?

A reverse mortgage is a powerful tool, but it is not for everyone. We believe you should see both sides clearly before you decide.

It can be a great fit when

  • You want to stay in your home long term
  • Your income cannot support regular mortgage payments
  • You want tax free cash without touching your RRSP or RRIF

Keep in mind

  • Interest compounds, so the balance grows over time
  • It reduces the equity left to your heirs
  • Rates are higher than a regular mortgage, and setup costs apply

Not sure it is the right path? We will also compare alternatives with you, such as a home equity line of credit, a home equity loan or a refinance, so you can choose with confidence.

LendToday broker comparing reverse mortgage options for a Canadian retiree
Why LendToday

Guidance you can trust

A reverse mortgage is a big decision, and you deserve advice that puts you first. Our accredited team compares Canada's leading providers to find the product, payout and rate that suit your life, then explains every detail in plain language.

We work with everyone. If you were declined elsewhere for low income or credit, a reverse mortgage may still be an option, and we will tell you honestly whether it is the right one.

  • Access to more than 50 lenders across Canada
  • Dedicated support throughout the whole process
  • Approvals in as little as 24 business hours
Why homeowners choose LendToday

Trusted Canadian mortgage specialists

4.9

Average client rating across our reviews

50+

Lenders in our network

30+

Years of combined experience

FSRA

Licensed brokerage, #13691

Questions and answers

Reverse mortgage FAQ

What is a reverse mortgage?

A reverse mortgage is a loan secured against your home that lets homeowners aged 55 and older access their equity as tax free cash. You make no monthly payments and keep ownership of your home. The loan is repaid when you sell, move out permanently, or the last owner passes away.

How much can I borrow with a reverse mortgage?

You can access up to 55% of your home value. The exact amount depends on your age, your home value, its location and the property type, and generally the older you are the more you can access. A quick estimate will show your number.

Do I have to make monthly payments?

No. There are no required monthly payments while you live in the home. Interest is added to the balance instead. You do need to keep your property taxes, insurance and home maintenance up to date. You can make optional payments if you wish to manage the interest.

Is the money taxable, and will it affect my OAS or GIS?

The money is tax free because it is loan proceeds, not income. It does not appear on your tax return and does not affect income tested benefits such as Old Age Security or the Guaranteed Income Supplement.

Who qualifies for a reverse mortgage in Canada?

You and every owner on the home's title must be at least 55 years old, the home must be your primary residence, and it usually needs to meet a minimum value of around $250,000. Your income and credit are not the deciding factors.

Do I still own my home?

Yes. You keep title and full ownership throughout. As long as you meet the terms of the loan, such as keeping taxes and insurance current, the lender cannot force you to sell or move.

Could I ever owe more than my home is worth?

No, thanks to the no negative equity guarantee. As long as you meet your obligations, you will never owe more than the fair market value of your home when it is sold. On average, homeowners still have over half their home value left after repayment.

Can I get a reverse mortgage with bad credit or low income?

Often yes. A reverse mortgage is based mainly on your age and your home rather than your income or credit, so many people who were declined for other financing still qualify. We are happy to review your situation with no obligation.

See how much you could unlock, tax free

Curious what a reverse mortgage could do for your retirement? Call us or apply online and a specialist will give you a clear, no obligation estimate and walk you through your options.