Active retirement

Tap your home equity without selling, without paying monthly.

You're 55+, homeowner with significant equity, and your retirement income is tighter than expected? Reverse mortgage (CHIP, Equitable Bank) lets you withdraw up to 55% of your home value with no monthly payment. Powerful tool — but to understand before signing.

What likely concerns you

• Understanding the difference between HELOC (monthly interest payments) and reverse mortgage (zero payment, capitalized interest).
• Evaluating real impact on your children's inheritance (compound interest can double the balance over 15 years).
• Preserving your Old Age Security (OAS) and Guaranteed Income Supplement (GIS) — money received from reverse mortgage isn't taxable.
• Choosing the right withdrawal mode: lump sum, monthly payments (annuity), line to draw as needed.
• Understanding real costs: 6-9% interest, opening fees $1,800-$2,500, independent legal advice $700-$1,200.
• Anticipating succession effect: 6-12 months to repay at your death (heirs sell or buy back).

What we avoid for you

• Steering you to a reverse mortgage if a simple HELOC meets your need (HELOC is cheaper if you can carry payments).
• Letting you sign without understanding long-term impact on your succession.
• Presenting you a single product (CHIP) without comparing with Equitable Bank or alternatives.
• Pushing you to withdraw the maximum available — often withdrawing half is enough and keeps the other as safety net.

How it works for you

1. 1

   Pre-qualification 2 min

   You indicate your age, owner status, city, estimated home value.

2. 2

   Coordinator calls you

   20-30 min, no pressure. We understand your real need: income, project, heirs, desired autonomy.

3. 3

   55+ specialized AMF broker

   A network broker who regularly builds senior files contacts you. Patience and clarity.

4. 4

   Mandatory legal advice

   Before signing, an INDEPENDENT lawyer or notary (not the lender's) explains everything. Cost ~$700-$1,200, paid by you, your guarantee.

Frequent questions — active retirement

• Will my heirs lose the house at my death?

  Not necessarily. Your heirs have 6-12 months to repay the balance — by selling the home, or buying it back with their own financing. The balance will never exceed home value ('no negative equity' guarantee). If equity remains, it goes entirely to them.

• Does the money received affect my government benefits (OAS, GIS)?

  No. Money received from a reverse mortgage is not taxable income — so doesn't affect Old Age Security (OAS) or Guaranteed Income Supplement (GIS). One of the major tax advantages for fixed-income retirees.

• What is the real 15-year cost?

  On a $100,000 withdrawal at 7% annually compounded, balance after 15 years is ~$280,000. Plus opening fees (~$2,500) + legal advice (~$1,000). The broker projects the precise scenario with your situation. If the home is worth $450k today and $600k in 15 years (2% annual growth), $320k equity remains for your heirs.

• Can I repay early if my situation changes?

  Yes, but often with penalty (3 months interest or IRD per contract). Read the early repayment clause carefully before signing. Independent legal advice should draw your attention to it.

• Reverse mortgage vs selling and renting: what's financially better?

  Sale: you free 100% of equity at once, no accumulating interest, but you lose future appreciation + rent expense. Reverse mortgage: no displacement, interest accumulates but residual equity benefits from appreciation. The broker models both scenarios.

• Are my RREGOP, QPP, and OAS income eligible to qualify?

  Yes — 100% of RREGOP, QPP, Old Age Security (OAS), and employer pension benefits are eligible as qualifying income at all A lenders. Guaranteed Income Supplement (GIS) is variable by lender (some accept, others don't). A recent letter from Retraite Québec / Service Canada is usually enough.

• Downsizing to a smaller condo: what is the tax impact?

  The sale of your principal residence is exempt from capital gains tax in Canada (regardless of value), provided it was your principal residence each year you owned it. You keep 100% of net sale proceeds. Anticipate transaction fees: real estate broker commission (~5%), notary fees (~$1,500), moving, welcome tax on the new condo.

• Can I take a new traditional mortgage after age 65?

  Yes, age is not grounds for refusal (prohibited by the Charter). What matters: stable qualifying income (pensions, annuities, RRSP/TFSA investments structured as regular withdrawals) and repayment capacity. Amortization can be adjusted to stay realistic (often 15-25 years). The AMF broker positions the file with lenders used to senior files.