What a reverse mortgage actually is
A reverse mortgage lets a Canadian homeowner aged 55 or older borrow up to 55% of their home's value as a tax-free lump sum or as scheduled advances, with no required monthly payments. Interest accrues against the home; the loan is repaid when the homeowner sells, moves out, or passes away.
The two main products in Canada are CHIP (HomeEquity Bank) and Equitable Bank's PATH. Both are federally regulated, both let you keep title to your home, and both guarantee you'll never owe more than the home's fair market value at the time of sale.
Why it shows up so often on the North Shore
West Vancouver, North Vancouver, and Lions Bay carry some of the highest concentrations of equity-rich, income-light retirees in Canada. A British Properties home held for 30 years may be worth $5M with no mortgage, while the owners are living on CPP, OAS, and a modest pension.
Traditional refinances are difficult on that income shape — banks stress-test against pension income at conservative qualifying rates and frequently can't approve a meaningful amount. A reverse mortgage qualifies based on age, home value, and location, not income — which is exactly why it exists.
When it's the right call
We see reverse mortgages do the most good in these situations:
- →Funding in-home care so the homeowner can stay in their North Shore home instead of moving to a facility
- →Eliminating a stress-tested HELOC or maturing mortgage the bank won't renew on retiree income
- →Bridging a primary residence change — selling the family home, buying a smaller West Van or North Van property with the reverse mortgage covering the gap
- →Gifting a living inheritance to children for their own down-payments (West Van and Edgemont parents do this often)
When it's the wrong call
Reverse mortgages carry higher interest rates than standard mortgages because there are no monthly payments — interest compounds. Over 10–15 years, the balance can grow significantly. They're not a fit when:
The homeowner has strong income and could comfortably qualify for a standard mortgage or HELOC, the homeowner plans to move within 2–3 years (closing costs and accrued interest hit harder on short holds), or family members are pressuring the homeowner into accessing equity for reasons that don't benefit the homeowner.
How we structure these files
We always run the full alternative analysis first — HELOC, refinance, downsizing, sale-leaseback — before recommending a reverse mortgage. When it is the right tool, we model the 5-, 10-, and 15-year balance projections in plain dollars and walk through them with the homeowner and (with their permission) their adult children.
We also coordinate with the homeowner's lawyer or notary, and where applicable their financial planner, so the recommendation is documented and the family understands exactly what's happening to the estate value over time.
FAQ
Will the bank take my North Vancouver home?+
No. You keep title. As long as you keep up property tax and home insurance and the home remains your primary residence, the loan sits on title until you sell, move out, or pass away.
Can I lose more than my home is worth?+
No. Both CHIP and PATH carry a no-negative-equity guarantee — you or your estate will never owe more than the home's fair market value at the time of sale, even if the balance has grown above it.
How much can a 70-year-old in West Vancouver borrow?+
Roughly 35–55% of the home's appraised value, scaling with age and location. West Van, North Van, and Vancouver postal codes typically qualify at the higher end of the range.