The Canadian reverse mortgage questions worth answering before you sign.

A reverse mortgage is a loan secured against a principal residence. A Canadian lifetime reverse mortgage generally has no required monthly mortgage payment, the homeowner remains on title, and the balance is repaid after defined events such as sale, a permanent move, or the death of the last qualifying borrower.

No. You remain the homeowner and title holder, subject to the mortgage terms and your continuing obligations. There is no birthday when the lender arrives with a moving truck.

A lifetime reverse mortgage has no required monthly mortgage payment. Current lifetime products also permit voluntary payments under lender rules. The obligation is gone. The option isn’t.

Lifetime products generally begin at age 55. Age, home value, location, property type, existing secured debt and lender underwriting all matter. Income and credit are treated differently from a conventional mortgage—not ignored by definition.

The range depends on age, property value, location, property type, lender and underwriting. Existing mortgages and secured lines of credit usually need to be paid from the advance, so maximum approval and usable proceeds are not the same thing.

All current Canadian lifetime reverse-mortgage lenders compound interest semi-annually. Interest that is not paid becomes part of the outstanding mortgage balance according to the lender’s terms, so future interest is calculated on a growing balance.

Current lifetime products commonly permit an annual principal reduction, often up to 10% of outstanding principal, subject to lender and product terms. The 10% limit refers to permitted principal reduction—not necessarily the size of the cheque when accrued interest must be handled first.

No. Funds already advanced and contractually scheduled advances are different from unused potential capacity. Money not advanced or contractually scheduled is not money sitting in a bank account.

Around $3,000 is a useful broad planning estimate for setup and closing costs in many straightforward lifetime transactions, but actual appraisal, legal, lender, title and discharge costs vary.

Not necessarily. A rate term is a pricing period; mortgage maturity is when the loan becomes due under its contract. A rate can renew without the mortgage ending.

Most current lifetime products offer some form of portability, subject to conditions, property acceptance, timing and lender approval. If a move is reasonably foreseeable, portability belongs in the lender decision before signing.

Current Canadian lifetime reverse mortgages generally include lender-specific no-negative-equity protection, subject to mortgage terms and homeowner obligations. The mortgage must still be dealt with, but selling the home is one common method—not necessarily the only one.

Loan advances are generally not taxable income. Tax consequences can arise from how borrowed money is used or invested. Follow the use of the borrowed money, not the label on the mortgage, and obtain tax advice for your situation.

It often can be. A HELOC generally offers lower-cost revolving access when the homeowner qualifies and can comfortably carry the required payments. A lifetime reverse mortgage may fit better when payment relief and tenure structure matter more.

Some straightforward files can fund in about seven days, roughly three weeks is a reasonable planning target, and complex files can take six weeks or longer. Timing is never guaranteed.