David, 69, and Helen, 67, had done everything right. They had bought their North Vancouver home in 1991 for $285,000, paid it off by 2014, and retired with what they thought would be enough: David's defined-contribution pension, Helen's part-time work income, and eventually CPP and OAS for both.

What they had not fully accounted for was inflation. By 2025, their combined monthly income was $3,200. Their monthly expenses — property taxes, strata fees, groceries, utilities, prescriptions, and the occasional dinner out — were $4,600.

They were drawing down their RRSP at an accelerating rate. At the pace they were going, their savings would be depleted within eight years — leaving them entirely dependent on CPP and OAS in their late seventies.

Their home, meanwhile, was worth $1,100,000. They were sitting on a fortune they could not spend.

The math was straightforward and uncomfortable:

They had considered selling and downsizing. But comparable condos in their area were selling for $750,000–$850,000 — and after transaction costs, they would net perhaps $200,000 in additional liquid assets. At a 4% withdrawal rate, that would generate $8,000 a year — not enough to close the gap, and they would lose the home they loved.

They had considered renting out a room. Helen vetoed it immediately.

A friend mentioned reverse mortgages at a dinner party. David spent two weeks researching before calling a specialist.

Rather than taking a lump sum, David and Helen set up their reverse mortgage as scheduled monthly advances — a feature available through several Canadian lenders that functions similarly to a pension payment.

Based on their ages and home value, they qualified for a total reverse mortgage of approximately $385,000 (35% of appraised value). They chose to draw $1,500 per month — slightly more than their shortfall, giving them a small buffer.

At that rate, they would draw approximately $18,000 per year. Their approved limit would last over 21 years of advances before reaching the maximum — by which point David would be 90 and Helen would be 88.

The immediate result:

• Monthly income: $3,200 + $1,500 = $4,700
• Monthly expenses: $4,600
• Monthly surplus: $100

They stopped drawing down their RRSP. Their savings — now no longer being depleted — began to recover modest growth.

One feature David particularly valued: the monthly advance amount can be adjusted. If a large expense comes up — a medical bill, a home repair, a grandchild's wedding — they can request a lump-sum draw against their remaining approved limit without refinancing or reapplying.

They used this feature once in the first year, drawing $12,000 to replace the roof. The monthly advances continued uninterrupted.

Their daughter, a financial planner in Calgary, was initially concerned. After reviewing the product details — the no-negative-equity guarantee, the ownership structure, the interest rate — she changed her position.

"She told us it was actually a reasonable strategy," Helen says. "She said the alternative — depleting our RRSPs and then having nothing — was worse. The house was always going to be part of our estate. This just meant we got to use some of it while we were alive."

David and Helen are still in North Vancouver. They travel to see their grandchildren in Calgary twice a year. They eat out on Friday nights. They are not counting pennies.

Their home has appreciated to approximately $1,175,000. Their reverse mortgage balance — with three years of monthly advances and accumulated interest — is approximately $68,000. Their net equity remains above $1,100,000.

"We worked for forty years," David says. "We paid off this house. We earned the right to live in it comfortably. The reverse mortgage just made that possible."

A reverse mortgage does not have to be a lump sum. For retirees with a steady income gap, monthly advances can function as a private pension — drawing on home equity gradually, preserving the rest, and providing predictable monthly cash flow with no repayment required.

If your retirement income does not quite cover your retirement expenses, and you own your home, your equity may be the most efficient solution available.

Names and some details have been changed to protect privacy. Results will vary based on individual circumstances.

Talk to a specialist about setting up monthly advances from your home equity — free consultation, no obligation.