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How to refinance and make your mortgage work harder
Lower your rate, consolidate debt, or unlock equity—without guessing. This guide breaks down when refinancing makes sense (and when it doesn’t).
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Let your home equity work for you
For many Canadians, the growing interest in reverse mortgages comes down to real life. Retirement doesn’t always mean expenses slow down, and many homeowners are looking for ways to boost cash flow—whether that’s paying off existing debt or covering everyday costs.
At the same time, more Canadians want to stay in the homes they love for as long as possible. A reverse mortgage can help make that happen. Here are a few reasons why it may be worth considering.
Stay in your home
You get the financial flexibility of accessing your home’s value while continuing to live there, no need to move or downsize before you’re ready.
No monthly payments
The loan is repaid later—usually when you sell your home or move out. That means more cash flow now, less pressure month to month, and the freedom to use your money for enjoying retirement without worrying about payments.
Tax-free funds
A reverse mortgage is tax-free because the money you receive isn’t considered income, it’s a loan against the value of your home. For this reason, it doesn’t affect government benefits such as Old Age Security (OAS).
Flexible access
You choose how and when you receive your money. You can take a lump sum, regular payments, or smaller withdrawals over time, and only use what you actually need. That way, the money can fit your life rather than forcing you into a one-size-fits-all payout.
How does a reverse mortgage work and is it right for you?
What should I think about before applying?
Interest adds up
Interest is added to the balance, so the amount owing grows over time.
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Estate impact
The balance comes from the sale of the home, so there may be less equity left to pass on.
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Early repayment costs
If you decide to sell, move, or repay the loan sooner, your lender may charge a prepayment penalty.
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Home upkeep required
Because the home’s value secures the loan, you still need to keep your home in good shape and stay on top of property taxes and insurance.
How do I qualify?
Be over 55
Every applicant must be 55 or over, as eligibility is based on the youngest person on the title.
Live there
You must live there most of the year and plan to continue calling it home.
Have enough equity
Most reverse mortgages let you borrow up to 55% of your home’s value, so you need enough equity to support that amount after any existing mortgage is paid off.
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Provide verification documents
You'll need government-issued identification and basic residency documentation to prove ownership and eligibility.
Getting a reverse mortgage is as easy as…
Speaking with us
We’ll help confirm eligibility and give you a clear picture of your available equity.
Choosing how to access your funds
Our Mortgage Experts will walk you through lump sum or installment options.
Completing an application
This involves an appraisal of your home, a check of your credit score and proof of identity.
*Lenders pay us, not you. So, you get expert guidance and more options at no extra cost.
Frequently asked questions
Yes. You always maintain title, ownership and control of your home. The reverse mortgage lender simply has a first mortgage on the title.
No. Most reverse mortgages come with a “No Negative Equity Guarantee”. This means that as long as you meet the required obligations, the amount you will have to pay on the due date will not exceed the fair market value of your home.
Like a regular mortgage, a reverse mortgage requires a home appraisal and independent legal advice, with similar upfront costs. Beyond that, there’s just a one-time closing and admin fee—and compared to the cost of moving, it’s often the more affordable option.
Interest rates on reverse mortgages are usually a bit higher than traditional mortgages, but not by much.
Yes. Heirs will always have the option of keeping the property by paying off your reverse mortgage after you pass away. Plus, if you have a “No Negative Equity Guarantee” in your reverse mortgage contract, then if the mortgage amount due is more than the gross proceeds from the sale of the property, the lender will cover the difference between the sale price and the loan amount. So, you will never owe more than the fair market value of the home.
Banks show you only their rates but we shop the market. As a proudly Canadian-owned network with access to hundreds of lenders, our Mortgage Experts will help you to keep more money in your pocket and take the stress out of the process.
Most reverse mortgage products waive prepayment penalties if the homeowner passes away or permanently moves into a long-term care facility. This allows the home to be sold without added fees, helping preserve more of the estate for beneficiaries.
As always, terms can vary by lender, so your broker will walk you through the exact details before anything is finalized.There are two Canadian Schedule I banks that offer reverse mortgages: Equitable Bank and Home Equity Bank. Both banks’ reverse mortgage products are similar in their design and function. Home Trust is an alternative lender that also offers reverse mortgages exclusively through mortgage brokers. We can help you determine which is best suited to your needs.
Stay in the home you love with a reverse mortgage
For homeowners 55+, our Mortgage Experts will guide you through what it is, how it works, and if it's right for you.
