Reverse mortgage in BC: understand the full cost before you decide.
A reverse mortgage lets homeowners 55 and older use some of their home equity without making monthly mortgage payments. It is also one of the more expensive ways to borrow, and it reduces the equity left in your home over time. I'm Matt, a licensed BC mortgage broker. I walk you through the full costs and the alternatives first, by phone or video, so you can decide with the facts.
What you need to know before you consider one
- Interest adds up and compounds. Because you aren't making payments, the interest is added to the balance and the amount you owe grows, sometimes quickly over a long period.
- Your equity shrinks. The more the balance grows, the less equity is left for you or your family.
- Rates are usually higher than rates on a conventional mortgage or line of credit.
- There are upfront costs. Expect an appraisal and legal fees, and lenders typically require independent legal advice.
- It can affect your estate and other plans. Talk to your family, lawyer and financial advisor before deciding.
I'm not a financial planner or lawyer, and nothing on this page is financial or legal advice.
Alternatives to look at first
- A regular mortgage refinance or a home equity line of credit, if you qualify on income
- Downsizing to a smaller home or a lower-cost property
- Using savings, investments or other assets first
- Renting out a suite or room, where your property and zoning allow
For some homeowners a reverse mortgage is the right fit. For others, one of these costs less. I'll show you the numbers side by side so you can see the difference. You can also compare renewing or refinancing or, if you are moving, buying a home.
The full BC reverse mortgage guide
My detailed reverse mortgage information, calculator and city guides live on a separate site so this one stays focused.
Go to the BC reverse mortgage guide
reversemortgageinbc.ca: how it works, costs, the alternatives and the questions to ask.
BRX Mortgage Inc. is paid by the lender if a loan funds, and the amount is disclosed to you in writing before you decide.
Do I still own my home with a reverse mortgage?
Yes, you stay on title. The loan is secured against the property and is repaid when the home is sold, you move out or you pass away, under the lender's terms.
Do I have to make monthly payments?
Not on the reverse mortgage itself, but you still pay property taxes, insurance and upkeep, and the balance grows with interest.
Can I leave my home to my family?
Yes, but the balance has to be repaid, so there may be less equity left for your estate.
Tell me what you're working on.
Send a few details and I'll follow up. Would you rather talk now? Pick a time that suits you.