The Facts About Reverse Mortgages

What is a reverse mortgage?

A reverse mortgage is a loan secured by your home equity. You can access funds while remaining the owner and occupant of your home.

Key points:

  • You continue to own and live in the home.
  • Monthly mortgage payments are not typically required.
  • Interest and fees accrue and are added to the loan balance.
  • The loan is repaid when you move, sell, or pass away.
  • The amount you can borrow depends on age, home value, and lender rules.

Did you know that with changes in the 2026 BC Budget, reverse mortgages can cost less than deferring your property taxes?

Benefits of a reverse mortgage

  • Access funds without mandatory monthly payments
  • Funds can support living costs, healthcare, home improvements, or debt repayment
  • You retain home ownership and residency
  • Flexible fund options (lump sum, regular periodic advances, or flexible according to your needs)

Disadvantages of a reverse mortgage

  • Interest compounds over time and increases the loan balance
  • Home equity may decline as the loan balance grows, depending on real estate market performance
  • Closing costs and ongoing fees vary by lender
  • Possible effects on eligibility for certain benefits; varies by situation
  • Not all homes or situations qualify; terms differ by lender

Is this right for you?

  • Stay-in-place vs. potential move timing
  • Cash needs for daily living, medical costs, or home improvements
  • Impact on inheritance and heirs’ plans
  • Review alternatives (refinance, HELOC, downsizing, selling) with your advisors
  • Involve family, a financial advisor, and a lawyer

If it’s not the best option for you, we’ll tell you honestly and explain why.

How it works

  1. Initial discussion: goals, home details, eligibility basics
  2. Personal assessment: age, equity, BC lender options
  3. Loan options: product types, terms, estimated funds
  4. Full disclosure: costs, fees, and financial projections
  5. Decision time: you decide whether to proceed
  6. Ongoing responsibilities: pay property taxes, insurance, maintenance; loan due when moved/sold/passed away

Why Wise Victoria Mortgages?

  • Local expertise and straightforward guidance
  • Honest, balanced information; we’ll tell you if a reverse mortgage isn’t right for you
  • Emphasis on engaging family, financial and legal advisors before committing
  • Transparent options, including alternatives
  • No pressure—your decision, your pace

FAQ

  • Do I still own my home? Yes. Ownership remains with you; loan repayment occurs on move, sale, or death.
  • Are there monthly payments? Usually not, but interest and fees accrue and are added to the loan.
  • How much can I borrow? Depends on age, home value, location, and lender rules.
  • What happens to my estate? The loan balance is repaid from the home sale proceeds upon death or if you no longer live in the home; remaining equity forms a portion of your estate.
  • Are there alternatives? We’ll compare refinancing, HELOCs, downsizing, or selling against a reverse mortgage.

Fund uses (Lifestyle + Helping Family)

Lifestyle and everyday living

  • Daily living expenses (groceries, utilities, transportation)
  • Healthcare costs
  • In-home care and support services
  • Home modifications for accessibility and safety
  • Travel and personal hobbies or leisure activities

Home and living environment

  • Home repairs and maintenance
  • Energy efficiency upgrades
  • Wheelchair-accessible upgrades and safety improvements

Medical and supportive services

  • Out-of-pocket medical costs, dental/vision care
  • Non-medical caregiving support
  • Transportation to medical appointments or social activities

Debt management and financial flexibility

  • Consolidating high-interest debt
  • Reducing monthly debt obligations and improving cash flow
  • Creating a modest emergency fund

Family and legacy-focused uses

  • Education or relocation support for family members
  • Assisting adult children with essential needs
  • Gifting or funding a specific family plan
  • Estate planning coordination and legal/financial advisor costs

Planning and safety net

  • Financial cushion for potential long-term care
  • Preserving homeownership for as long as possible
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