A reverse mortgage may let an eligible BC homeowner access part of their home equity without selling the principal residence or making regular mortgage payments.
Seven Lending is a licensed mortgage brokerage. We help homeowners compare available products, estimated borrowing amounts, interest, fees, repayment conditions and alternatives before deciding whether a reverse mortgage fits their plans.
Approval, available equity, rates and terms depend on the provider and complete application. Seven Lending arranges financing and is not the reverse mortgage lender.
Eligibility is not based on age alone. A provider normally reviews every registered homeowner, the property, its location and value, and any debt already secured against it.
The age of the youngest borrower, property marketability and current underwriting rules can affect the amount available.
Review my eligibility
A reverse mortgage is a loan secured by an eligible homeowner’s principal residence. It converts part of the home equity into borrowed funds while the homeowner keeps title to the property.
Regular principal and interest payments are generally not required. Instead, unpaid interest is added to the mortgage balance, meaning the amount owed normally grows and the remaining home equity may decrease over time.
The loan is commonly repaid when the home is sold, the last borrower permanently leaves the property or dies, or another repayment event listed in the agreement occurs.
For a longer educational explanation, read how reverse mortgages work in Canada.
It can support retirement cash flow, but it is not automatically the lowest-cost way to use home equity. Compare the benefit with the long-term effect on the mortgage balance and estate.
| Potential benefit | Important trade-off |
|---|---|
| Remain in the home while accessing eligible equity. | The mortgage balance generally increases when payments are not made. |
| Regular principal and interest payments are generally not required. | Reverse mortgage rates are usually higher than standard mortgage or HELOC rates. |
| Loan proceeds are generally not treated as taxable income. | Appraisal, legal, setup, closing and prepayment costs may apply. |
| Funds may support renovations, debt repayment, care or other needs. | Using equity now can leave less equity for future needs or an estate. |
| Title remains with the homeowner, subject to the mortgage. | Property taxes, insurance, maintenance and other agreement conditions must still be met. |
Tax and benefit outcomes depend on personal circumstances. Consider independent legal, tax and financial advice.
The amount available is provider-specific. It can depend on the youngest borrower’s age, the appraised home value, property type, BC location, existing secured debt and current product rules.
If approved, funds may be available through a lump sum, scheduled advances or another provider-specific option. Existing mortgages and secured debts normally need to be repaid at closing, which reduces the net funds received.
When regular payments are not made, interest is added to the loan. Interest is then charged on the growing balance. Property appreciation may offset some growth, but future values cannot be guaranteed.
The appropriate structure depends on payment capacity, qualification, timing, total cost and how long the financing may remain in place.
| Feature | Reverse mortgage | HELOC | Conventional refinance |
|---|---|---|---|
| Regular payments | Generally not required, subject to terms | Interest payments normally required | Principal and interest payments required |
| Qualification | Age, property, equity and provider rules | Income, credit, equity and debt review | Income, credit, debt ratios and equity |
| Interest effect | Added to balance if unpaid | Paid regularly or handled under line terms | Included in scheduled payments |
| Access to funds | Provider-specific advance options | Reusable credit limit | Usually lump-sum proceeds |
| Effect on equity | Balance normally grows over time | Depends on borrowing and repayment | Balance generally declines through payments |
Terms vary by provider. A BC home equity loan may also be worth comparing when regular payments are manageable.
Seven Lending helps organize the file and compare available options, but the reverse mortgage provider makes the approval and funding decision.
Share the homeowners’ ages, property address, estimated value, existing mortgage balance and intended use of funds.
Review estimated availability, rate, fees, advance method, prepayment rules and repayment conditions.
The provider may require a property appraisal and independent legal advice before closing.
Conditions are completed, secured debts are addressed and the remaining proceeds are advanced under the agreement.
A reverse mortgage may solve a cash-flow problem, but another structure could cost less or preserve more equity. Compare the complete cost and payment requirements of:
Seven Lending can review these paths without assuming a reverse mortgage is automatically the best choice.
Compare my options
You retain title to the home, subject to the registered mortgage. You must continue meeting the agreement’s conditions, which can include maintaining the property, keeping insurance and paying property taxes. A breach may create consequences, so review every condition with independent legal counsel.
Reverse mortgage proceeds are generally borrowed funds rather than income and are usually received tax-free. Personal tax and benefit circumstances can differ, so confirm the effect with a qualified adviser.
Unpaid interest is added to the mortgage, causing the amount owed to increase. Ask for an illustration showing how the balance and estimated remaining equity may change over time.
The mortgage generally becomes repayable under the agreement. The home may be sold, or the estate or family may arrange another way to repay the balance within the provider’s required timeline.
Possibly. Existing mortgages and other secured debt normally must be repaid, often from the reverse mortgage proceeds. The remaining equity must support the requested financing.
Some products permit partial or full repayment, but limits and prepayment charges may apply. Review the provider’s repayment rules before accepting the mortgage.
The amount depends on the youngest borrower’s age, appraised value, location, property type, existing secured debts and current provider rules. An estimate is not a guarantee of approval.
Tell us who is registered on title, the property location and estimated value, your current mortgage balance and the amount you want to access.
We can explain available options, total costs, repayment conditions and alternatives so you can make an informed decision. Approval and product terms remain subject to the provider’s review.
*After submitting this form, we will contact you within 24 hours.
*After submitting this form, we will contact you within 24 hours.