A reverse mortgage is a loan secured against a homeowner's principal residence that allows the borrower (typically aged 55 or older) to access home equity without making regular principal or interest payments during the loan term. Interest accrues over time and the loan is repaid when the home is sold, the borrower moves out permanently, or the borrower dies. Reverse mortgages in BC are subject to federal consumer protection requirements and general BC property and mortgage law, including registration under the Land Title Act, RSBC 1996, c. 250. Verify current product features, costs, and eligibility with a BC lawyer, notary, or licensed mortgage professional before proceeding.

Reverse mortgages are regulated at the federal level by the Financial Consumer Agency of Canada (FCAC) under federal financial consumer protection legislation, and general mortgage lending rules apply. In BC, the mortgage instrument must be registered under the Land Title Act, RSBC 1996, c. 250, and lenders must comply with disclosure and contract law principles. There is no separate BC statute dedicated exclusively to reverse mortgages; verify applicable regulatory protections and disclosure requirements with a BC lawyer, notary, or licensed mortgage professional.

Most reverse mortgage lenders in Canada require borrowers to be at least 55 years of age (as of 2026-07-27 — verify current), though some products may set the minimum age at 60 (as of 2026-07-27 — verify current). Age eligibility is determined by lender policy, not by a specific BC statute. Verify the current minimum age and any co-borrower age requirements with your lender or a licensed mortgage professional before applying.

No. Under a reverse mortgage, the borrower does not make regular principal or interest payments during the term of the loan; instead, interest accrues and is added to the outstanding balance. The loan becomes due and payable when the borrower sells the home, moves out permanently, or dies, at which point the principal and accrued interest must be repaid. Verify repayment triggers and prepayment options with your lender or a BC lawyer or notary before entering the loan.

When the borrower dies, the reverse mortgage loan (principal plus accrued interest) becomes due and payable, and the estate or heirs must repay the loan, typically by selling the property or refinancing. Under the Wills, Estates and Succession Act, SBC 2009, c. 13, the executor or administrator of the estate is responsible for settling the borrower's debts, including the reverse mortgage. Verify estate administration steps and timelines with a BC lawyer or notary, and consult a licensed tax professional regarding any income tax or probate fee implications.

Yes, a reverse mortgage may be registered against a strata lot (condominium unit) in BC, provided the lender approves the strata corporation and the property meets the lender's underwriting criteria. The strata lot title is governed by the Strata Property Act, SBC 1998, c. 43, and the mortgage is registered under the Land Title Act, RSBC 1996, c. 250. Verify lender-specific strata approval requirements and any restrictions with your lender or a BC lawyer or notary before proceeding.

The funds advanced under a reverse mortgage are loan proceeds, not income, and are generally not taxable when received; however, the accrued interest may have estate or capital gains tax implications upon repayment or sale of the property. Provincial Property Transfer Tax under the Property Transfer Tax Act, RSBC 1996, c. 378, does not apply to the initial registration of a reverse mortgage, but may apply if title is transferred to repay the loan. Verify all income tax, estate tax, and capital gains tax consequences with a licensed tax professional before proceeding.

You retain ownership and the right to live in your home as long as you meet the loan obligations: maintaining the property, paying property taxes, and keeping homeowner's insurance current. If you fail to meet those obligations, or if you permanently move out or sell the home, the loan becomes due and the lender may require repayment, potentially leading to sale of the property. Verify all loan covenants and default terms with your lender or a BC lawyer or notary before signing.

Taking a reverse mortgage does not automatically disqualify you from the BC Home Owner Grant under the Home Owner Grant Act, provided you continue to meet residency and other eligibility requirements. The grant is available to homeowners who occupy the property as their principal residence as of December 31 of the previous year (as of 2026-07-27 — verify current). Verify current grant eligibility and application procedures with the BC Ministry of Finance or a BC lawyer or notary.

Reverse mortgage costs typically include an application or setup fee, an appraisal fee, legal fees for independent legal advice (strongly recommended), title registration fees under the Land Title Act, RSBC 1996, c. 250, and ongoing interest charges (which accrue and compound over the life of the loan). Specific dollar amounts and interest rates vary by lender and market conditions (as of 2026-07-27 — verify current). Verify all upfront and ongoing costs, including the annual interest rate and compounding frequency, with your lender and a BC lawyer, notary, or licensed mortgage professional before proceeding.