How does a reverse mortgage work in Canada?

A reverse mortgage allows homeowners 55+ to access up to 55% of their home equity tax-free without making monthly payments. The loan is repaid when you move, sell the home, or pass away. You continue to own your home and maintain title.

Do I have to make payments on a reverse mortgage?

No, reverse mortgages require no regular payments. Interest accrues on the loan balance over time, and the entire amount is repaid when you sell your home, move out, or pass away.

Will a reverse mortgage affect my pension or government benefits?

The money from a reverse mortgage is tax-free and generally does not affect Old Age Security (OAS) or Canada Pension Plan (CPP) benefits. However, it could impact income-tested benefits, so it is important to discuss your situation with a professional.

Reverse Mortgage | Finex Lending

Designed exclusively for homeowners 55+, a reverse mortgage is a unique borrowing solution that allows borrowers to access home equity. There are no monthly payments required and you still own your home. It takes home equity and turns it into tax-free cash — you do not need to move, sell or downsize. You don't pay back the loan until you move or sell.

This equity can be used how you want: supplement retirement income, renovate your home, help your children with a down payment, travel, or cover unexpected expenses.

All other lending products on the market today that enable homeowners to tap into home equity — including a home equity line of credit or mortgage refinance — require regular payments. With those mortgage solutions, borrowers must also qualify based on their income and credit score. With a reverse mortgage, you can access up to 55% of the value of your home and your credit is rarely a factor.

We're here to help weigh your options and decide if this solution is best to help you free up cashflow and live a more comfortable life.

Reverse Mortgage

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