Products

Reverse mortgage

A loan for homeowners 55+ that lets you access up to 55% of your home's appraised value, tax-free, with no monthly payments required. Interest accrues; the loan is repaid when the home is sold or the last borrower dies.

A reverse mortgage turns home equity into tax-free cash without forcing a sale or requiring monthly payments. You keep title and stay in the home; the balance (principal plus accrued interest) is repaid only when you sell, move out, or pass away.

How much you can access depends on your age, the home's value and location, and the lender — generally up to 55% of value, with more available the older you are. Rates are higher than a standard mortgage, and because interest compounds, the balance grows over time and erodes the equity you leave behind.

It suits retirees who are house-rich but cash-poor and want to age in place. For some, a HELOC or downsizing is cheaper — so it's worth comparing the options against your goals before committing.

Sources

Borrowing against home equity (Financial Consumer Agency of Canada)

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A lender

A bank or monoline that prices its lowest rates and tightest underwriting against borrowers who fit prime credit, income, and property criteria. The big banks (RBC, TD, Scotia, BMO, CIBC, NB) and major monolines (MCAP, First National, MERIX) are A lenders.

B lender

An alternative ("alt-A") lender that prices higher than A lenders but flexes on credit history, income documentation, property condition, or self-employed earnings. Examples include the alternative-lending programs of Equitable Bank and Home Trust.

Bridge financing

Short-term loan that lets you close on a new home before the sale of your existing one funds. Priced at prime + premium, secured against both properties, typically up to 90-120 days.

Closed mortgage

A mortgage that limits how much extra you can prepay each year and charges a penalty if you break the term early. Almost all standard Canadian mortgages are closed because the rates are materially lower than open.

Collateral charge mortgage

A mortgage registered against your property for more than the actual loan amount, letting you increase the limit later without re-registering. Common at TD and Scotia. Makes inter-lender switches harder mid-term.

Conventional mortgage

A mortgage with at least 20% down. No mortgage default insurance required. Pricing is typically higher than insured because the lender carries more of the credit risk.

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