Reverse Mortgage Myths—Busted!
If you're a homeowner aged 55 or older, you may have heard about reverse mortgages—and chances are, you've also heard a few myths that made you think twice. At CV Mortgage Group, we’re here to clear the air and help you understand the real facts behind reverse mortgages in Canada.
Let’s break down some of the most common misconceptions and what’s actually true.
Myth #1: “With a reverse mortgage, you no longer own your home.”
Reality: You always retain ownership of your home.
A reverse mortgage doesn’t take your home away. You stay on title and remain the legal owner, just like with a traditional mortgage. As long as you continue to meet your mortgage obligations—such as paying property taxes and maintaining the property—you stay in control.
Myth #2: “You’ll owe more than your home is worth.”
Reality: That’s not allowed in Canada.
Thanks to the “no negative equity guarantee,” the amount you owe when your reverse mortgage is due will never exceed the fair market value of your home—as long as mortgage obligations are met.
This federally mandated protection ensures that you or your estate are never left with a bill greater than your home's value.
Myth #3: “Reverse mortgages are too expensive.”
Reality: Reverse mortgages can actually be a cost-effective solution.
Yes, you’ll need to cover appraisal costs, legal advice, and a closing fee—but when compared to the costs of downsizing, selling, or relocating, many homeowners find a reverse mortgage to be the more affordable and convenient choice.
Myth #4: “Reverse mortgages have higher interest rates.”
Reality: It depends on the situation.
Reverse mortgage rates are generally higher than traditional mortgage rates, but they don’t require monthly payments. For retired Canadians who may not qualify for a conventional mortgage—or for whom fixed monthly payments are a financial burden—a reverse mortgage offers flexibility and freedom.
Myth #5: “You can’t pass your home to your kids.”
Reality: You absolutely can.
When you pass away, your heirs can choose to repay the reverse mortgage and keep the property. And thanks to the no negative equity guarantee, they’ll never owe more than the home’s market value if all mortgage obligations were met.
Still Have Questions About Reverse Mortgages?
You're not alone. Reverse mortgages aren’t for everyone, but they can be a powerful tool for retirees who want to access their home equity without selling or moving.
Let’s talk about whether a reverse mortgage is the right fit for your retirement goals. Contact us today for expert guidance you can trust.


