A reverse mortgage is a loan that allows homeowners to access cash by borrowing against their home equity without having to sell their home. In Canada, reverse mortgages are available to homeowners aged 55 and older. The two main providers of reverse mortgages in Canada are HomeEquity Bank and Equitable Bank. HomeEquity Bank offers the Canadian Home Income Plan (CHIP), which is available across Canada, while Equitable Bank offers a reverse mortgage in some major urban centers.

Before getting a reverse mortgage, homeowners must first pay off and close any outstanding loans or lines of credit that are secured by their home, such as a mortgage or a home equity line of credit (HELOC). The money obtained from a reverse mortgage can be used for various purposes, such as home repairs or improvements, regular bills, healthcare expenses, or debt repayment.

It is important to shop around and explore options before getting a reverse mortgage, as it may limit other financing options secured by the home, such as a HELOC. Homeowners can get the money from their loan by taking it as a one-time lump sum or taking some of the money upfront and taking the rest over time.

In summary, a reverse mortgage in Canada is a loan that allows homeowners aged 55 and older to access cash by borrowing against their home equity without having to sell their home. Homeowners must first pay off and close any outstanding loans or lines of credit that are secured by their home before getting a reverse mortgage. It is important to shop around and explore options before getting a reverse mortgage, as it may limit other financing options secured by the home.