For over 30 years HomEquity Bank has been the only provider of reverse mortgages in Canada, under their brand Canadian Home Income Plan . A reverse mortgage is a mortgage specifically designed for the financial needs of seniors. Unlike traditional mortgages where you have to make regular payments a reverse mortgage does not require any payments until you move or sell.
Since a reverse mortgage does not require any repayments, there are also no credit-checks or income requirements. Traditional mortgages look closely at the clients ability to repay debt, this is not the case with a reverse mortgage. The great thing about this is that no matter the situation a reverse mortgage is always a possible solution to withdrawing equity from your home.
There are a lot of misunderstandings with this type of mortgage. Mainly people hear about predatory reverse mortgages from the United States, which are designed to take peoples houses. In Canada however this is simply not the case with 99% of people still having equity in their house at the time of sale. Our financial system in Canada and banking regulations are WAY MORE conservative than in the USA. In Canada you remain on title of your home, and you can never owe more than what the house is worth. As long as you live in the house you can never be forced to move or sale.