Reverse Mortgages
A smart solution for retirement planning
A reverse mortgage is an innovative financial tool designed to help Canadian homeowners aged 55 and older access the equity in their homes without selling or making monthly mortgage payments. Whether you want to supplement retirement income, cover healthcare costs, renovate your home, or achieve greater financial flexibility, a reverse mortgage can provide the stability and freedom you deserve.
As financial expert Ben Stein once said, “The indestructible wealth of a person lies in their home equity.” A reverse mortgage enables you to harness that wealth while maintaining full ownership of your home.
What is a reverse mortgage?
A reverse mortgage allows you to convert a portion of your home’s value into tax-free cash while continuing to live in your home for as long as you choose. Unlike a traditional mortgage, where you make monthly payments, a reverse mortgage works in the opposite way—the lender pays you, and repayment is deferred until you sell your home or move out permanently.
Benefits of a reverse mortgage
1. Tax-free access to home equity
- Receive lump-sum payments, regular income, or a combination.
- Funds can be used for home renovations, medical expenses, travel, or helping family members.
- No restrictions on how you use the money.
2. No monthly mortgage payments
- Unlike a home equity loan or HELOC, a reverse mortgage doesn’t require monthly payments.
- The loan balance is repaid only when the home is sold or the homeowner moves out permanently.
3. Stay in your home
- Maintain full ownership and independence—you are not selling your home.
- There is no obligation to move, and you can live in your home for as long as you want.
4. More equity available as you age
- The older you are, the more equity you can access.
- Loan amounts are based on home value, location, and borrower age.
5. No income or credit requirements
Approval is not based on credit score or income, making it a great solution for retirees with limited fixed income.
How reverse mortgages work in Canada
| Eligibility Requirements | Loan Features |
| Homeowners must be 55+ | Loan amount based on age, home value, and location |
| Must own and live in the home as the primary residence | No monthly payments required—loan is repaid when home is sold or homeowner moves out |
| Available for detached, semi-detached, townhouses, and condos | Interest accrues over time, but homeowners can prepay anytime |
Top reverse mortgage lenders in Canada
Reverse mortgages in Canada are primarily offered by two leading lenders:
Equitable Bank and HomeEquity Bank (CHIP Reverse Mortgage).
Equitable bank reverse mortgage
- Competitive interest rates.
- More flexibility in how funds are accessed (partial draw options available).
- Higher borrowing limits for eligible properties.
- Best suited for urban homeowners looking for customizable financing.
HomeEquity bank – CHIP
reverse mortgage
- Nationwide availability, including smaller towns.
- Flexible disbursement options (lump sum, monthly payments, or a mix).
- No regular income verification required.
- Ideal for homeowners needing broader accessibility and flexible withdrawal options.
Key differences between equitable bank
& CHIP reverse mortgages
| Feature | Equitable Bank Reverse Mortgage | CHIP Reverse Mortgage |
| Availability | Urban and suburban areas | Nationwide |
| Interest Rates | More competitive | Slightly higher |
| Borrowing Limits | Higher limits for eligible borrowers | Based on home value and borrower age |
| Disbursement Options | Flexible draw options with lower initial interest rates | Lump sum, regular payments, or a combination |
Reverse mortgage example:
How it works
The situation
Michael and Susan, a retired couple aged 72 and 68, owned a home valued at $800,000 but were struggling with rising living costs. They wanted to access $200,000 from their home equity without selling or taking on monthly debt obligations.
The solution
- They secured a reverse mortgage loan of $200,000 with a flexible withdrawal plan.
- They opted to take $100,000 upfront to pay off outstanding expenses and keep the rest available for future needs.
- No monthly payments were required, and their home value continued to appreciate.
The outcome
- Maintained ownership of their home.
- Avoided tapping into retirement savings.
- Financial flexibility without monthly mortgage payments.
Who should consider a reverse mortgage?
A reverse mortgage is ideal for:
- Retirees looking to boost cash flow without selling their home.
- Homeowners 55+ who want to stay in their home while accessing home equity.
- Seniors who need funds for home modifications, medical expenses, or lifestyle enhancements.
- Individuals with little income but significant home equity.
Why choose Better Mortgage Select for your reverse mortgage?
At Better Mortgage Select, we specialize in helping Canadian homeowners understand reverse mortgages and retirement financing. Our experienced mortgage professionals work with both Equitable Bank and HomeEquity Bank to secure the best possible terms for your financial goals.
What we offer:
Expert guidance
We explain the benefits, costs, and considerations to ensure you make an informed decision.
Customized solutions
We analyze your unique situation and recommend the best lender and structure for your needs.
Transparent process
No hidden fees, full clarity on loan terms, and ongoing support.
Trusted lender network
Access competitive rates and flexible payment options from Canada’s top reverse mortgage providers.
Reverse mortgage. Real freedom.
No monthly payments. No selling. Just your equity working for you.
Take the next step toward financial freedom
If you’re a homeowner 55 or older and want to explore how a reverse mortgage can enhance your retirement, we’re here to help.
Let Better Mortgage Select help you unlock your home’s equity while maintaining ownership and financial security.
Contact us today for a personalized consultation!