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What Edmonton Seniors Need to Know About Reverse Mortgages
April 15, 2025 | Posted by: Jeff Chin
As retirement approaches, many Edmonton homeowners find themselves house-rich but cash-flow limited. A reverse mortgage can be a powerful solution—especially for seniors who want to enjoy retirement without selling the home they love.
What Is a Reverse Mortgage?
A reverse mortgage is a financial product that allows homeowners aged 55 or older to access up to 55% of their home’s value in tax-free cash. Unlike traditional loans, no monthly mortgage payments are required. The loan is only repaid when the homeowner moves, sells the property, or passes away.
How Does a Reverse Mortgage Work?
Reverse mortgages in Canada are regulated and safe. The most popular option is the CHIP Reverse Mortgage by HomeEquity Bank. Here’s how it works:
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You remain the owner of your home.
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You receive tax-free funds as a lump sum or in installments.
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You don’t need to make monthly payments.
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The loan is repaid when you move out, sell, or pass away.
Why Edmonton Seniors Are Considering Reverse Mortgages
With rising living costs and limited pension income, many Edmonton seniors are looking for ways to boost their financial freedom. Here are some common reasons people in Edmonton use reverse mortgages:
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Supplement retirement income
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Pay off existing debts
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Cover healthcare or home care costs
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Renovate or adapt the home for aging in place
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Help children or grandchildren financially
In some cases, seniors explore reverse mortgages as an alternative to traditional refinancing. If you're unsure which option fits best, you can also explore The Ultimate Guide to Refinancing in Edmonton to compare both strategies side by side.
Eligibility for a Reverse Mortgage in Edmonton
To qualify for a reverse mortgage, you must:
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Be 55 years or older
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Own your home (or have a small mortgage balance)
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Live in the home as your primary residence
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Own a home that meets the property standards set by the lender
Pros and Cons to Consider
✅ Benefits
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Keep ownership of your home
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Access to tax-free cash
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No monthly payments required
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Flexible use of funds
⚠️ Considerations
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Interest compounds over time
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Home equity will decrease
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Loan must be repaid eventually
That’s why it’s essential to speak to a trusted professional who can walk you through the numbers and make sure it’s the right choice for you.
Speak to a Reverse Mortgage Specialist in Edmonton
If you're considering a reverse mortgage, Steven Boodoo is your local Edmonton expert. With experience, honesty, and personalized service, Steven can help you understand if this is the right solution for your retirement needs.
Call Steven today at 780-297-5708
Learn more or book a free consultation: https://www.edmmtg.ca/index.php/contact
