For lenders Log in Start bids

Reverse mortgage

A reverse mortgage lets Canadian homeowners 55 and older borrow against home equity without making regular payments. Interest builds over time and the loan is repaid when you sell, move out or pass away. It costs more than a HELOC but doesn't require income to qualify.

Updated October 7, 2026

Challenge your renewal rate

Step 1 of 4
Key takeaways
  • Available from age 55; borrow up to about 55% of value depending on age and home.
  • No payments required; the balance grows.
  • Rates are higher than regular mortgages and HELOCs.

How does a reverse mortgage work in Canada?

You receive a lump sum or advances. Interest compounds; you keep title.

Pros and cons

Reverse mortgage pros and cons
ProsCons
No monthly paymentsHigher rates
Stay in your homeEquity shrinks over time
No income needed to qualifyPrepayment penalties

Reverse mortgage vs HELOC

A HELOC is cheaper but needs income to qualify and requires interest payments.

Frequently asked questions

Can I lose my home with a reverse mortgage?

Not for owing too much, as long as you keep up taxes, insurance and maintenance.

MBWritten by the MortgageBids.ca editorial team. Last updated October 7, 2026. General information only; your lender confirms terms for your file.
Sources
  1. FCAC: Reverse mortgages (checked October 7, 2026)

Related

HELOC

Challenge your mortgage rate

Connect with verified lenders and brokers bidding on your mortgage. Free for homeowners, three short steps.

Start bids