Later-life equity option
Understand reverse mortgages in BC, how interest affects home equity, when repayment may be required, and alternatives to compare before borrowing.
Direct answer
A reverse mortgage lets an eligible homeowner borrow against home equity while continuing to own the home. Interest added to the balance can reduce remaining equity over time. Consider future housing plans, repayment conditions and alternatives before deciding whether the structure fits.
Reverse mortgages generally target older homeowners, usually age 55 or over. The lender considers age, property and other eligibility requirements. Ask for a projection showing the loan balance and estimated remaining equity under several interest and house-value assumptions.
Ask what happens if you sell, move into care, are away from the home, or a borrower dies. Review obligations concerning property taxes, insurance and maintenance. Get an explanation of charges for early repayment and any independent legal advice requirements.
Compare a smaller conventional mortgage, a HELOC, downsizing or using other assets where appropriate. Consider cash flow, borrowing costs and the estate impact together. A product that reduces scheduled payments may still increase total debt.
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Next step
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Content reviewed September 9, 2026. These resources provide background; individual lender requirements and property circumstances differ. Illustrative calculations are examples, not financing offers.