Reverse mortgages in Canada
A reverse mortgage lets homeowners, usually aged 55 or older, borrow against their home equity without selling. You can usually borrow up to 55% of your home's current value.
How it works
- You don't make regular payments. Interest is added to the balance, so what you owe grows over time.
- The amount you can borrow depends on your age and the age of others on the title, and on your home's type, condition and appraised value.
- The home must usually be your primary residence, which typically means living there at least 6 months a year.
- The money doesn't affect Old Age Security or Guaranteed Income Supplement benefits.
Costs
Reverse mortgage interest rates are usually higher than regular mortgage rates. Other costs can include appraisal, set-up, legal and closing fees, and a prepayment penalty if you repay early. Lenders may add fees to the balance.
How much banks hold
In Aug 2026, banks reported $11.6B in reverse mortgages, compared with $1.97T in other residential mortgages.
Compare other options
- Selling and buying a smaller home, or renting
- A home equity line of credit or another type of loan
- Getting advice from a lawyer, and talking with your family about the effect on your estate
Sources
Rules are summarized in our own words from official publications. Check the source and talk to your lender or a licensed professional before making a decision.
Informational only, not financial advice. Data as of the release snapshot generated 2026-11-14.