Reverse Mortgage

A reverse mortgage is a financial arrangement 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 and your living expenses. A reverse mortgage can provide access to funds based on the equity you have in your home.
• 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.
• Learn about how to defer your taxes if you are over 55 years of age or are a person with a disability and live in your own home using the Property Tax Deferment information online or call Property Tax Deferment 1-888-355-2700.
• In addition, you can apply for a Home Owner Grant for Seniors  each year to reduce the amount of taxes you pay.
• 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.
• Be aware that your reverse mortgage can be a significant part of your retirement financial plan and is included in your Mywell Health planner under My Financial Plan.

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