Trusted mortgage services
Reverse mortgages for homeowners 55 and older
Turn part of your home's value into cash without selling or making monthly mortgage payments. We explain the costs plainly, compare the alternatives and welcome your family to the conversation.
- 5-yr fixed
- 4.69%
- 5-yr variable
- 3.70%
Updated Oct 8 · on approved credit · Compare to bank rates
How a reverse mortgage works
A reverse mortgage lets homeowners 55 and older borrow against their home without making regular mortgage payments. Every owner on title has to be at least 55. You can usually borrow up to 55% of your home's appraised value, and the amount depends on the age of the youngest borrower, the home's value, where it is and the type of property.
Instead of being paid down, the interest is added to the balance, so what you owe grows over time. The loan is repaid when you sell, move out, for example into long-term care, or when the last borrower dies. You keep ownership, and you must keep paying the property tax and home insurance, keep the home in good repair and live in it as your principal residence. Rates are higher than on a regular mortgage, so we walk you and your family through the full cost and the alternatives before you decide.
What a reverse mortgage can help with
Retirement income
Top up your retirement income, or pay off an existing mortgage or other debts and free up your monthly budget.
Staying in your home
Pay for renovations and accessibility changes, such as a main-floor bedroom or a walk-in shower, so your home keeps working for you.
Family and care
Help a child or grandchild with a down payment, or cover the cost of care at home, without selling your home.
How it works
How we arrange a reverse mortgage
Talk it through
We go over what the money is for, your other options and how the balance grows over time. Family members are welcome to join.
Estimate the amount
We estimate how much you could borrow from the youngest borrower's age, your home's value and location, and the property type.
Appraisal and legal advice
The lender orders an appraisal, and lenders usually require you to get independent legal advice from your own lawyer before you sign.
Funding
Any existing mortgage on the home is usually paid out first, and the rest is paid to you. We stay in touch as your needs change.
Frequently asked questions
You have questions — we have answers!
Reverse Mortgages in BC
Who can get a reverse mortgage?
Homeowners 55 and older, and every owner on title has to be at least 55. If a younger spouse is on title, they have to be 55 too, so we look at other options until they are. The home has to be your principal residence, with enough equity in it. Because there are no regular payments, lenders usually look more at your home and your age than at your income, but you still need to keep up with the property tax, insurance and upkeep.
How much can I borrow with a reverse mortgage?
Usually up to 55% of your home's appraised value. The exact amount depends on the age of the youngest borrower, the home's value, its location and the type of property, and older borrowers can usually access a larger share. Any existing mortgage or other debt secured on the home is usually paid out first from that amount. You don't have to take the full amount, and borrowing only what you need keeps the balance, and the interest on it, smaller.
Do I make payments on a reverse mortgage?
No regular mortgage payments are required. The interest is added to your balance instead, so the amount you owe grows over time, and the loan is repaid when you sell, move out or the last borrower dies. You still pay your property tax and home insurance yourself, keep the home in good repair and live in it as your principal residence. These are conditions of the loan, so build them into your budget.
What does a reverse mortgage cost?
Rates are higher than on a regular mortgage, and because interest is charged on a growing balance, the cost adds up over the years. There are setup costs too, such as an appraisal, legal fees and closing fees. If you repay in the early years, there are usually prepayment penalties, and they vary by lender. Before you decide, we show you how the balance could grow over time, so you and your family can see the full picture.
What happens to my home and my estate?
You keep ownership of your home. When you sell, move out or the last borrower dies, the loan and the interest added to it are repaid, usually from the sale of the home, and the remaining equity goes to you or your estate. Because the balance grows over time, there will be less left for your heirs than if you had no mortgage. That's one reason we encourage you to involve your family early and to get independent legal advice before you sign.
What are the alternatives to a reverse mortgage?
Downsizing can free up money and lower your running costs, if you're ready to move. A home equity line of credit can cost less, but you need enough income to qualify and you have to make payments. Refinancing can also work if your income supports the payments. We compare each of these with a reverse mortgage on your own numbers, so you can choose what fits your plans, not just what's quickest.
Today's rates
Our rates vs the banks'
We shop 50+ lenders, so the rate you're offered isn't limited to one bank's rate sheet. Updated Oct 8.
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Everyone's rate is different. What's yours?
Our job is to find you a competitive rate and terms that fit. Your rate qualification depends on certain factors, such as credit score and home equity, as per Canadian regulations. Get your details fast — there's no cost and no obligation.
- Current variable mortgage rate
- 3.70%
- Current prime rate
- 4.45%
| Term | Bank posted | Our rates | Action |
|---|---|---|---|
| 6 Months | 7.89% | 4.79% | Get this rate: 6 Months |
| 1 year fixed | 5.49% | 4.64% | Get this rate: 1 year fixed |
| 2 year fixed | 5.44% | 4.44% | Get this rate: 2 year fixed |
| 3 year fixed | 6.05% | 4.54% | Get this rate: 3 year fixed |
| 4 year fixed | 6.01% | 4.39% | Get this rate: 4 year fixed |
| 5 year fixed | 6.19% | 4.69% | Get this rate: 5 year fixed |
| 7 year fixed | 6.41% | 4.79% | Get this rate: 7 year fixed |
| 10 year fixed | 6.81% | 4.79% | Get this rate: 10 year fixed |
| 5 year variable | No bank rate | 3.70% | Get this rate: 5 year variable |
Bank posted rates are the big banks' posted rates published by the Bank of Canada (1, 3 and 5 years) and by Dominion Lending Centres (other terms). Some conditions may apply. Rates may vary from province to province. Rates subject to change without notice. Rates change often and depend on your down payment, credit and property; on approved credit (O.A.C.). E.&O.E.
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Contact info
Call, email or send us a message. We negotiate with over 50 lenders to find the right mortgage for you.
- Our location525 W 8th Ave #800, Vancouver, BC V5Z 1C6
- Phone number778-838-8005
- Email addressinfo@coastalblue.ca