Mortgage Articles

For many Canadians, their home is their biggest financial asset. After years of homeownership, they may have paid off most (or all) or all their mortgage and built a lot of equity in their home. The problem: You can own a valuable home and still struggle to pay your monthly bills. You've probably heard the phrase “house rich and cash poor.” This is exactly what it means. For Canadian homeowners aged 55 and older, a reverse mortgage is one option worth looking at. It's definitely NOT the right solution for everyone. But for some homeowners, it can provide extra cash while allowing them to stay in the home they love. What Is a Reverse Mortgage? A reverse mortgage allows homeowners 55+ to access some of the equity in their home without selling it. Unlike a regular mortgage, you don't normally have to make monthly mortgage payments. Instead, interest is added to the amount you borrowed, so the balance grows over time. The mortgage is typically repaid when the home is sold, the homeowners permanently move out, or the last homeowner dies. And one of the biggest misconceptions I hear? The bank does NOT own your home. You do. You stay on title and continue to own your home. The money you receive is also generally tax-free because you're borrowing the money - it's not income. What Does “House Rich, Cash Poor” Look Like? Let's say you've lived in your home for 30 years. Your mortgage is paid off and your home is now worth $1 million. Sounds pretty good, right? But your retirement income may come from CPP, OAS, a pension and your savings. At the same time, groceries, property taxes, insurance, utilities and everything else seem to keep getting more expensive. So, while you may have hundreds of thousands of dollars in home equity, your monthly budget can still feel tight. You have the money. It's just tied up in your house. A reverse mortgage is one way to access some of that equity without having to sell and move. What Could You Use the Money For? There are generally no restrictions on how you use the money. Everyone's situation is different, but I've seen homeowners consider a reverse mortgage to: Pay off an existing mortgage, credit cards or other debts Add to your monthly retirement income Make home repairs or accessibility upgrades so you can stay in your home longer Pay for in-home care Help children or grandchildren financially Cover unexpected expenses or create an emergency fund Depending on the product, you may also have choices about how and when you receive the money. You don't necessarily have to take everything at once. Why Not Just Sell and Downsize? This is usually one of the first alternatives we talk about. Downsizing can make perfect sense—but it's not always as easy or as inexpensive as people think. A smaller home or condo can still be expensive, especially in many BC communities. Then add real estate commissions, legal fees, moving expenses, strata fees and other costs. And there's another part of this decision that has nothing to do with numbers. Your home is more than an asset on a balance sheet. Maybe you've lived there for 30 years. Your friends are nearby. You know your neighbours. Your doctor, family and community are close. Maybe you simply love your home and don't want to move. For many retirees, being able to stay in their home is an important part of their retirement plan. So... What's the Catch? There isn't any free money here. Reverse mortgage rates are typically higher than traditional mortgage rates. And because you aren't making regular mortgage payments, the interest gets added to the amount you borrowed. That means the amount you owe grows over time and the equity left in your home can decrease. There can also be appraisal, legal, setup and closing costs. Depending on the mortgage and when you repay it, there may also be a penalty. And remember—you still own the house. That means you're still responsible for maintaining it, keeping it insured and paying the property taxes. That's why it's important to look beyond the interest rate and understand the long-term costs. What About My Children's Inheritance? This is a conversation worth having with your family. A reverse mortgage will normally mean there is less equity left in your home for your estate. For some homeowners, leaving as much as possible to their children is extremely important. Others look at it differently. They would rather use some of the equity they've spent decades building to make their own retirement more comfortable. And some parents decide they'd rather help their children or grandchildren now , while they're still here to see them enjoy it (i.e. a gifted down payment). There's no right or wrong answer. It's your home, your equity and your decision. Reverse Mortgage or Home Equity Line of Credit (HELOC) ? A HELOC is another way to access the equity in your home. But there's an important difference. With a HELOC, you need enough income to qualify, and you'll need to make monthly payments. That can be difficult for someone who is retired and has a valuable home but limited monthly income. A reverse mortgage works differently because it's designed for older homeowners. One option isn't automatically better than the other. Maybe a HELOC makes more sense. Maybe refinancing makes more sense. Maybe a reverse mortgage does. It depends on your income, age, equity, monthly cash flow and, most importantly, what you're trying to accomplish. Is a Reverse Mortgage Right for You? 

If you're thinking about buying a home in BC, one of the first questions you probably have is: How much mortgage can I qualify for? Your income is certainly important, but it isn't the only number a mortgage lender looks at. Lenders also consider your debts, credit history, down payment, property costs and something called your mortgage lending ratios . The two ratios you'll hear about most often are GDS (Gross Debt Service) and TDS (Total Debt Service) . The names sound complicated. The math really isn't. Understanding how GDS and TDS work can give you a much better idea of what you may qualify for — and why two people earning the same income could qualify for very different mortgage amounts.

If you’re buying a condo, townhouse, or bare-land strata property in BC, there’s one document many buyers overlook: the depreciation report. Strata depreciation report requirements - Province of British Columbia And honestly… it’s one of the most important documents you can review before buying. I see this all the time with clients. Some buyers carefully review it. Others quickly skim through it just to “check the box.” But this report can affect: your mortgage approval future repair costs special levies insurance and how stressful ownership may become later So, let’s break it down in simple, real-world language.

Decisions relating to real estate can have significant financial and legal consequences. Before deciding how to share ownership of what is likely one of the largest investments of your life, I recommend consulting a real estate lawyer. Many Canadians purchase property together — including spouses, common-law partners, family members, friends, and business partners. Because ownership structure affects estate planning, taxes, creditor exposure, and control over the property, it’s important to understand your options before you sign. In Canadian property law, there are two primary forms of co-ownership: Joint Tenancy Tenancy in Common While these terms may sound similar, they have very different legal and financial effects — particularly if one owner dies, sells their interest, separates, or faces creditor claims.

If you’re 55 or older and own your home, chances are you’ve heard about reverse mortgages. Sometimes they’re described as a “retirement lifesaver.” Other times they sound risky or confusing. The truth? They’re neither magical nor terrible. They’re simply a financial tool — and like any tool, they work well in some situations and not so well in others – EDUCATION is the key! Let’s break it down in plain English. So… What Is a Reverse Mortgage? A reverse mortgage allows you to borrow money against the value of your home — without making monthly mortgage payments. Instead of you paying the lender every month, the interest gets added to the balance. The loan is typically repaid when: The home is sold You move out permanently Or you pass away In Canada, reverse mortgages are currently offered by: HomeEquity Bank (CHIP Reverse Mortgage) Equitable Bank Bloom Financial You still own your home and your name stays on title. That part often surprises people. How It Works (Simple Version) To qualify: You must be 55 or older You must own your home (you can still have a regular mortgage — it just needs to be paid out) You can usually borrow up to about 55% of your home’s value (the older you are, the more you may qualify for) You don’t make monthly payments. But you must continue to: Pay property taxes Keep home insurance in place Maintain the home The money you receive is tax-free. It can come as: A lump sum Monthly advances Or a combination of both That flexibility is one reason many retirees like this option. Why Do People Consider Reverse Mortgages? Most of the homeowners I speak with aren’t looking for luxury spending money. They’re trying to solve real life situations: Covering rising living costs Paying off debt before retirement Managing health or care expenses Staying in their home longer Helping adult children with a down payment For many Canadians, their house is their largest asset — but it doesn’t create monthly income. A reverse mortgage turns some of that home equity into usable cash. The Pros (The Reasons People Like Them) 1. No Monthly Mortgage Payments This is the big one. If you’re living on CPP and OAS, removing a monthly mortgage payment can dramatically reduce stress. Cash flow improves immediately. 2. You Can Stay in Your Home Most people I meet don’t want to move. They love their neighborhood. Their friends are nearby. Family visits often. A reverse mortgage can allow you to age in place instead of selling before you’re ready. 3. The Money Is Tax-Free Because it’s borrowed money — not income — it does not affect: Old Age Security (OAS) Guaranteed Income Supplement (GIS) That’s a major advantage compared to withdrawing from investments. There are no rules about spending. Some clients use the funds to stay in place – health care at home. Some clients renovate. Some travel. Some gift funds to children. Some simply create a safety cushion. It’s your equity – you decide. 5. You Keep Ownership The bank does not own your home. As long as you live in your home, maintain it, insure it, and pay property taxes — you own your home and can stay. 6. No Negative Equity Guarantee In Canada, reverse mortgages include protection so that you (or your estate) will never owe more than the home is worth — even if property values decline. That protection matters.

What Is BC Assessment? Every January, British Columbia homeowners receive their annual Property Assessment Notice . BC Assessment is a provincial Crown corporation responsible for valuing all real estate in British Columbia for property tax purposes. Each year, BC Assessment provides an estimate of a property’s fair market value as of July 1 of the previous year . 👉 To view the most recent assessment for any property, visit the BC Assessment website and search by address. Important things to understand about BC Assessments Timing matters. Your 2026 assessment reflects an estimated market value as of July 1, 2025, not today. Markets change quickly. In active or volatile markets (like Greater Vancouver and the Fraser Valley), values can shift significantly in a matter of months. Mass appraisal methods are used. BC Assessment relies on algorithms and broad market data rather than a detailed, in-person inspection of your specific home. Because of this, an assessed value can differ — sometimes substantially — from: a lender-ordered mortgage appraisal, or a private real estate appraisal completed for buying or selling. BC real estate context (2026) As we move through 2026, BC housing markets continue to be influenced by: interest-rate expectations and changes by the Bank of Canada, affordability pressures, regional supply constraints, and local economic conditions. This means BC Assessment values should be used only as a starting point , not as a precise indicator of what a property will sell for or what a lender will accept as value. Bottom line: Do not rely on BC Assessment for the exact value of a property you’re planning to sell, purchase or refinance.

Foreign Home-Buyer Tax in BC: What You Need to Know as of Dec. 2025 (For informational purposes only – always confirm details with your accountant & lawyer before buying.)

Buying a home is one of the most important financial decisions you will make and tends to be stressful with all the new terminology.  To help you understand the process and have confidence in your choices, check out the following common terms you will encounter during the home buying process.  Amortization – Length of time…