Reverse Mortgage
For Canadians 55 and older — access your home equity tax-free with no monthly mortgage payments required.
A reverse mortgage allows Canadian homeowners aged 55 and older to access up to 55% of their home's value as tax-free cash — with no monthly mortgage payments required. You retain full ownership of your home and continue living in it. Calgary Mortgage Shoppe provides independent advice on reverse mortgages to help you determine whether this product fits your retirement strategy.
Frequently Asked Questions
Do I still own my home with a reverse mortgage?
Yes, absolutely. You remain on title as the registered owner. The reverse mortgage lender has a charge on the property (like a regular mortgage) but you retain full ownership and the right to live in your home.
What if I want to sell my home?
You can sell your home at any time. When you sell, the reverse mortgage balance (principal plus accumulated interest) is repaid from the proceeds, and any remaining equity belongs to you. Standard prepayment penalties may apply if you repay within 5 years.
How is a reverse mortgage different from a HELOC?
A HELOC requires monthly interest payments and ongoing income to qualify. A reverse mortgage requires no monthly payments and qualification is based primarily on age and home equity, not income. The trade-off is that interest compounds on the reverse mortgage balance over time, reducing your equity more quickly.
What happens when the last borrower passes away?
The estate has 6 months to repay the reverse mortgage, typically by selling the property. Any remaining equity belongs to the estate and beneficiaries. HomeEquity Bank's no-negative-equity guarantee means the estate will never owe more than the home sells for.
Are reverse mortgage proceeds taxable?
No. Reverse mortgage funds are considered loan proceeds, not income, and are not taxable. They also do not affect your eligibility for income-tested government benefits such as OAS or GIS. Consult your financial advisor for your specific tax situation.