Access your home equity with a reverse mortgage — without selling, and without monthly mortgage payments.

No — not if the loan stays in good standing. You remain the owner. You will not be asked to leave simply because you are not making monthly mortgage payments. You can lose the home if you default — for example if you stop paying property taxes or insurance, let the home fall into serious disrepair, move out permanently, or break other conditions. As long as you meet those obligations and the home remains your principal residence, you can typically stay as long as you wish.

The lender has a mortgage on the property, as with any home loan. Major Canadian reverse mortgage lenders offer a no-negative-equity guarantee: if you meet the loan conditions, you (and your estate) should not owe more than the home’s fair market value when it is sold. That guarantee is from the lender and does not cover every fee in every situation.

Often, yes, if there is enough equity. Existing mortgages or HELOCs are usually paid out from the proceeds. Many people use a reverse mortgage specifically to eliminate a current monthly payment.

In Canada you may typically access up to about 55% of the appraised value. The amount depends on your age and the ages of others on title, the type, condition, and location of the home, and the lender. A formal figure requires an application and appraisal.

Reverse mortgage rates are usually higher than a conventional mortgage or a HELOC. That is a real trade-off. In return, you generally do not have to make monthly payments or qualify the same way on income. We will show estimated interest and how the balance can grow, in writing, before you commit. We will not quote a rate on this page because rates change.

It will use some of your equity, and interest will accrue, so there may be less to leave in your estate. It does not automatically use all of your equity. What remains depends on how much you borrow, how long the loan is outstanding, interest, and how the home’s value changes.

Depending on the lender and product, you may take a lump sum, take some now and more later, or receive scheduled advances. Taking only what you need can reduce the interest you pay.

The funds are borrowed money, not income, so you generally do not pay income tax on the advances themselves. The Financial Consumer Agency of Canada states that this money does not affect OAS or GIS benefits you may be receiving. If you invest the proceeds, the investment income may be taxable and may affect income-tested benefits. Confirm with a tax professional or Service Canada if you rely on GIS.

Typical costs include an appraisal, independent legal advice, and lender or closing fees. Many can be deducted from the advances; the appraisal is sometimes paid separately. Early repayment may carry a prepayment charge. You will see a full cost picture before you sign.

Monthly mortgage payments are not required as long as you live in the home and keep the loan in good standing. You must still budget for property taxes, insurance, utilities, and maintenance. If those obligations are a concern, tell us at the assessment.

They are the two federally regulated banks most often compared. CHIP (HomeEquity Bank) is widely available across the provinces. Equitable Bank’s product is typically offered in eligible urban markets in Ontario, B.C., Alberta, and Quebec. Eligibility, fees, rates, and maximum amounts differ. GNE can help you compare; we do not work for only one of these lenders.

In Ontario, yes. GNE cannot arrange a reverse mortgage unless we receive a written statement, signed by a lawyer, confirming you received independent legal advice. Even outside Ontario, legal advice is strongly recommended.