How a Reverse Mortgage Works
A clear, step-by-step guide — in plain language. No jargon, no pressure, no obligation.
Your family members and advisors are always welcome to be part of the conversation.
The Process, Step by Step
We guide you through every stage — at whatever pace feels right for you.
We Have a Conversation
Everything starts with a relaxed, no-obligation conversation. We listen to your situation, your goals, and any concerns you or your family may have. There is no pressure and no commitment required — just honest, clear information.
You are welcome to include your adult children, your lawyer, or your financial advisor. Many of our clients find it helpful to have a trusted person alongside them.
We Assess Your Home & Eligibility
We review your home's estimated value, your age, and your location to determine how much equity you may be able to access. We explain your options from both of Canada's leading reverse mortgage lenders — CHIP by HomeEquity Bank and Equitable Bank.
A licensed appraiser will assess your home's market value as part of the formal application. We walk you through what to expect at every stage.
You Review & Decide — At Your Own Pace
We present your options in plain language, with no jargon. You take as much time as you need to review, ask questions, and consult with your family or advisors. There is absolutely no rush.
Independent legal advice is required before finalizing a reverse mortgage in Canada. We help you understand this step and what it involves.
You Receive Your Tax-Free Funds
Once you are comfortable and ready to proceed, your funds are advanced — as a lump sum, regular monthly deposits, or a combination. The money is completely tax-free and arrives directly in your account.
There are no monthly mortgage payments required. The loan is repaid when you sell your home, move, or when your estate is settled.
Setting the Record Straight
There are many misconceptions about reverse mortgages. Here is the truth behind the most common ones.
Common Misconception
"The bank will own my home."
The Truth
Your name stays on the title throughout the life of the reverse mortgage. You remain the registered homeowner. The lender holds a mortgage against the property — just as with any mortgage — but ownership is always yours and your family's.
Common Misconception
"I could end up owing more than my home is worth."
The Truth
Both CHIP and Equitable Bank offer a "no negative equity guarantee." This means you will never owe more than the fair market value of your home at the time of repayment — even if property values decline.
Common Misconception
"A reverse mortgage is a last resort for people in financial trouble."
The Truth
Many Canadians use reverse mortgages as a thoughtful retirement planning tool — to supplement income, help family members, renovate their home, or simply enjoy a more comfortable retirement. It is a legitimate financial option, not a sign of hardship.
Common Misconception
"My children will inherit nothing."
The Truth
Most homeowners retain significant equity even after a reverse mortgage. Any equity remaining after the loan is repaid belongs entirely to your estate. We encourage open conversations with your family so everyone understands the full picture.
Common Misconception
"I have to make monthly payments."
The Truth
There are no mandatory monthly payments with a reverse mortgage. The loan — plus accumulated interest — is repaid in full when you sell, move, or when your estate settles. You can make voluntary payments at any time if you choose.
Frequently Asked Questions
Detailed answers to the questions we hear most often — from homeowners and their families.
A Note for Family Members & Advisors
If you are an adult child, a lawyer, a financial planner, or an accountant helping someone explore this option — you are very welcome here.
We are happy to answer your questions directly, explain the legal and financial details, and help you feel confident that your client or loved one is making a fully informed decision.