Do I still own my home with a reverse mortgage?
Yes. You remain the legal owner of your home. The bank does not take ownership — a reverse mortgage is simply registered on title, similar to a regular mortgage or home equity line of credit.
How much home equity will I have left?
That depends on the balance of your reverse mortgage compared to your home’s current market value. As interest accumulates, your equity can decline, but the final amount will vary with future home values.
What can I use the money for?
It’s completely your choice. Common uses include:
Paying off an existing mortgage
Covering living expenses or medical costs
Funding home renovations or in-home care
Helping family with a down payment
Travel or lifestyle expenses
What if I already have a mortgage on my property?
Your existing mortgage must be paid off. You can use the funds from your reverse mortgage to clear your mortgage balance, any other debt, or liens on the property.
What happens if my spouse passes away?
If both spouses are listed as joint borrowers, the surviving spouse keeps all rights to the reverse mortgage and can continue living in the home.
Who pays the property taxes?
You are still responsible for paying property taxes directly. In British Columbia, you may qualify for the BC Property Tax Deferment Program once your reverse mortgage is in place.
Can a Power of Attorney (POA) apply on my behalf?
Yes, if the POA is for property and grants authority to deal with real estate. However, a POA can’t be used just because you’re out of the country — it must allow for property transaction.
Is a home equity line of credit a better option?
It could be for some people, but HELOCs require income to qualify and monthly payments to maintain. Many retirees don’t meet those requirements, which makes reverse mortgages a better fit in those case.
Why do I need Independent Legal Advice (ILA)?
It’s a safeguard for you. ILA ensures you understand the contract, are mentally capable of making the decision, and aren’t under pressure to sign. Every titleholder (and any non-titleholder spouse) must meet with a lawyer
How can I reduce the amount of interest I’ll pay?
You can limit your initial advance and draw additional funds only when you need them. Another option is to make voluntary monthly interest payments — with no prepayment penalty.
Can I apply for BC Property Tax Deferment if I have a reverse mortgage?
Yes. Having a reverse mortgage does not prevent you from applying.
Can I transfer my reverse mortgage to a new property?
Yes. The mortgage is portable, provided the new property meets Equitable Bank’s lending guidelines.
Conditions apply please give us a call for more information.