A reverse mortgage is a financial arrangement in Canada whereby homeowners aged 55 and older can borrow against the equity in their homes.
Tips & Links
In planning for your retirement, you may be encouraged to look for ways to secure funds for aging in place. A reverse mortgage can provide access to funds based on the equity you have in your home.
Learn More
- Be aware that the amount you can borrow is based on factors such as your age, the value of your home, and current interest rates. The lender makes payments to you either in a lump sum, regular installments, or a combination of both. Interest accrues on the loan balance over time. However, you are not required to make payments on the loan, as long as you live in the home. The loan is typically repaid when you sell the home, move out permanently, or pass away.
- Learn more about reverse mortgages from the Government of Canada.
Things You Can Do
- Discuss the option of a reverse mortgage and other financing alternatives with a qualified care partner, accountant, or financial planner.
- Record your insights and decisions in the financial planning worksheets found in Understanding My Financial Situation.
- Learn how to defer your property taxes if you are over 55 years of age and/or a person with a disability living in your own home by visiting the Property Tax Deferment website or calling 1-888-355-2700.
- In addition, learn how you can apply for a home owner’s grant, if eligible, each year to reduce the amount of taxes you pay from the Government of BC.
- It is important to include any debts or financial obligations in your will and to communicate with your beneficiaries about the existence of a reverse mortgage and how it may affect the inheritance they receive.
Consider a reverse-mortgage as part of your financial plan found in the Mywell Health activities under My Financial-Plan.
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Categories: My Financial Plan, Senior
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