“The bank owns my home.”
False. You remain the owner and stay on title, provided you continue to meet your mortgage obligations.
Common myths
Reverse mortgage myths and facts.
Many homeowners are interested in reverse mortgages but hesitate because of misunderstandings. This page answers the most common concerns in plain English.
Common myths
Most reverse mortgage concerns come from misunderstanding the product.
Before making a decision, it is important to separate myths from facts and understand both the benefits and the trade-offs.
“My family could owe more than the home is worth.”
False, if obligations are met. Canadian reverse mortgages include a no-negative-equity style protection tied to the home’s fair market value.
“My children can’t keep the home.”
False. Your estate or heirs can repay the reverse mortgage if they want to keep the property.
“Reverse mortgages are only for people in trouble.”
Not necessarily. Many homeowners use them as part of broader retirement, family-support, renovation, or cash-flow planning.
“I can’t move later.”
You can still choose to sell the home. The reverse mortgage would typically be repaid from sale proceeds.
“This replaces financial planning.”
No. It should be reviewed alongside your broader retirement, tax, legal, estate, and family goals.