Is a Reverse Mortgage Right for You? Here’s What You Need to Know

If you’re 55 or older and own your home in BC—especially in areas like Vancouver, Richmond, Burnaby, or the Okanagan—you may have heard about reverse mortgages. Maybe a friend mentioned it, or you saw something on TV. But what is a reverse mortgage really—and could it make life a little easier in retirement?

Let’s break it down simply and honestly, so you can decide if this is something worth exploring.

What is a Reverse Mortgage?

A reverse mortgage lets you unlock some of the value built up in your home—without having to sell it or move out. You can access up to 55% of your home’s value in tax-free cash, and you don’t have to make any monthly mortgage payments. The money is yours to use how you want, and the loan is paid off later—usually when you move out or sell the home.

Why Do People Choose a Reverse Mortgage?

Many homeowners in BC are what we call “house-rich but cash-poor.” You’ve worked hard to pay off your home (or most of it), and now it’s worth a lot—but that value is locked away. A reverse mortgage helps you turn that value into financial freedom.

Here are some common ways people use a reverse mortgage:

To boost monthly income so there’s more breathing room in retirement
To pay off debts and live without the stress of bills piling up
To help family members, like giving adult kids a down payment or helping with grandkids’ education
To make home upgrades, like adding a walk-in tub, stairlift, or just modernizing things
To cover unexpected costs, like medical bills or long-term care
To stop making monthly mortgage payments, freeing up hundreds or thousands a month

What Makes It Different From a Regular Mortgage?

With a regular mortgage or line of credit, you’re expected to make payments every month. A reverse mortgage is the opposite: no monthly payments are required. You continue to own your home, stay in it as long as you like, and use the money in a way that works best for you.

You can take the money:

All at once in a lump sum
In monthly or quarterly payments
Or as a line of credit to draw from when needed

You can even combine these options for more flexibility.

Is It Safe? What Happens to My Home?

These are great questions—and ones I hear a lot.

Yes, it’s safe. Reverse mortgages are backed by reputable lenders and are highly regulated in Canada.

Yes, you keep full ownership of your home. You can still sell it, renovate it, or leave it to your estate—just like before.

There’s also a “No Negative Equity Guarantee”, which means your estate will never owe more than the fair market value of the home when it’s sold.

In other words, you’re protected. Your heirs are protected. And you’re still fully in control.

Who Qualifies for a Reverse Mortgage?

You might qualify if:

You’re 55 or older (this applies to both spouses if you’re applying together)
Your home is your primary residence
You have equity built up in your home

You don’t need to be mortgage-free, either—you can use a reverse mortgage to pay off your existing mortgage and stop those monthly payments.

There’s also no income or credit score requirement, which is helpful if you’re on a fixed income or recently retired.

Real-Life Example: How a Reverse Mortgage Helped

Let’s say you’re 68 and live in Richmond in a home worth $1 million. You still owe $100,000 on your mortgage and find it hard to keep up with the payments on your pension. With a reverse mortgage, you could:

Pay off the $100,000
Access an extra $300,000+ tax-free (depending on your age and home value)
Eliminate monthly mortgage payments
Use the funds to travel, renovate, or simply enjoy your retirement without worrying about cash flow

And the best part? You stay in your home for as long as you want.

Is a Reverse Mortgage Right for You?

A reverse mortgage isn’t for everyone—but for many of my clients across Vancouver and the Okanagan, it’s been a lifeline. It can reduce financial stress, improve quality of life, and allow you to age in place with dignity and independence.

You’ve worked hard for your home. A reverse mortgage helps your home give back.

If you’re curious and want to explore whether it’s a good fit for you, I’d be happy to walk you through your options. No pressure—just honest advice and answers to your questions.

Let’s Chat

Whether you’re still just gathering information or ready to see what numbers might look like for your specific home, I’m here to help.

Amy 604-880-2484
Amy@amykmortgages.ca

Helping homeowners turn equity into opportunity!