If you're 55 or older and own a home in Canada, you can borrow up to 59% of its value — and keep your house. No monthly payments. No income test. No clawbacks on OAS or GIS. You only repay when you sell, move out long-term, or pass away.
Lender appraises your home. Eligibility check: 55+, primary residence, low/no existing mortgage. No income or credit test like a regular mortgage.
Up to 55–59% of home value, depending on lender and your age. Take as a lump sum, monthly draws, or a line of credit.
Zero monthly payments. Interest compounds semi-annually. You keep title, stay in the home, and use the money however you want.
When the last borrower sells, moves out 12+ months, or passes away — loan + accrued interest is repaid from the sale. Heirs keep the rest.
Reverse mortgages compound. Home values usually rise. Whether your kids inherit anything depends on which line wins. Run the numbers honestly.
Reverse mortgage LTV is gated by age (and by lender). Here's the typical ladder for a primary residence in a major Canadian city.
There are only two banks issuing reverse mortgages in Canada. Both are federally regulated. Both offer the no-negative-equity guarantee.
The category leader. Most brokers recommend CHIP first. Branded heavily through Pat Foran ads. Standard CHIP and CHIP Open (flexible prepayments, higher fees).
Get a CHIP quote ↗The challenger. Often beats CHIP on rate by 15–20 bps. Three flavours: Flex Lite (lump sum, 40% LTV), Flex (lump + LOC, 55%), Flex PLUS (59% — highest in Canada).
Get an Equitable quote ↗Verdict: If you have steady retirement income and want the cheapest cost of capital, a HELOC wins. If your income is too low to qualify, or you genuinely don't want monthly payments — reverse mortgage is the only product that delivers that.
No. You keep title. The lender does not own your house. You can live there for life as long as it remains your primary residence and you maintain it (taxes, insurance, basic upkeep).
No. Both Canadian providers offer a no-negative-equity guarantee in writing. If at settlement the loan balance exceeds the sale price, the lender absorbs the loss. Heirs walk away owing nothing.
No. It's a loan, not income. You will not pay tax on it, and it does not affect OAS, GIS, or CPP benefits.
Both spouses on title must be 55+. If only you qualify, your spouse may need to come off title — risky if they outlive you. Equitable accepts as young as 55; CHIP also requires 55.
Yes, but prepayment penalties apply within the 5-year term (typically 3 months' interest if after year 3; up to ~5% earlier). After the term, prepay anytime.
Sale of the home, both borrowers move out for 12+ months (e.g., long-term care), or the last borrower passes away. Heirs typically have 180 days to settle.