A loan available to homeowners (typically aged 55 or older) that allows them to borrow against the equity in their principal residence without making regular principal or interest payments. Interest accrues and is repaid when the home is sold, the borrower moves out, or the borrower dies. Reverse mortgages have specific costs, eligibility requirements, and consumer protections.
In British Columbia, reverse mortgages are generally available to homeowners who are aged 55 or older and who occupy the property as their principal residence. All registered owners on title must meet the minimum age requirement, and the property must satisfy the lender's eligibility criteria. Eligibility rules are set by individual lenders, so borrowers should consult directly with a licensed mortgage broker or lender for current requirements.
No — a defining feature of a reverse mortgage is that the borrower is not required to make regular principal or interest payments while living in the home. Instead, interest accrues on the outstanding balance over time. The full loan amount, including accumulated interest, becomes due when the home is sold, the borrower permanently moves out, or the borrower dies.
When a reverse mortgage borrower dies, the outstanding loan balance — including all accrued interest — typically becomes immediately due and payable. Under the Wills, Estates and Succession Act (WESA), the estate executor or personal representative is responsible for settling the borrower's debts, which includes repaying the reverse mortgage, usually through the sale of the property. Beneficiaries who wish to keep the home must arrange alternative financing to pay out the lender.
A reverse mortgage is registered as a charge on the property's title in the BC Land Title Office, and it must be discharged before or upon any transfer of the property. If the property is sold, the lender receives the outstanding loan balance, including accrued interest, from the sale proceeds before any remaining equity is distributed to the homeowner or estate. A BC notary public or lawyer typically handles the discharge of the mortgage charge at closing.
Registering a reverse mortgage itself is not a transfer of a fee-simple interest in property, so it does not trigger Property Transfer Tax (PTT) under the BC Property Transfer Tax Act. PTT is generally payable on the transfer of a registerable interest in land, not on the registration of a mortgage charge. However, if the property is later sold or transferred to repay the reverse mortgage, PTT obligations would apply to that subsequent transaction based on the fair market value and applicable PTT tier rates.
Yes, a reverse mortgage can generally be placed on a strata lot in BC, provided the lender's eligibility criteria are met and the strata lot is the borrower's principal residence. Strata lots are governed by the Strata Property Act (SBC 1998, c. 43), and any potential buyer or lender may request a Form B Information Certificate from the strata corporation to review the lot's financial standing, outstanding levies, and applicable bylaws. Borrowers should also be aware that strata fees and special levies continue to be the owner's responsibility regardless of the reverse mortgage.
A BC real estate licensee licensed under the Real Estate Services Act (RESA) and regulated by the British Columbia Financial Services Authority (BCFSA) does not arrange or administer reverse mortgages, as mortgage brokering is a separate licensed activity. However, a licensee representing a buyer or seller where a reverse mortgage is involved must disclose all known material latent defects and ensure their client understands how the existing mortgage charge on title will be handled during any real estate transaction. Licensees must always act in accordance with their duties of disclosure and loyalty as set out in RESA and the Real Estate Services Rules.
Owning property within BC's Agricultural Land Reserve (ALR), administered by the Agricultural Land Commission under the Agricultural Land Commission Act (SBC 2002, c. 36), does not in itself prevent a homeowner from obtaining a reverse mortgage, provided the property and the homeowner meet the lender's eligibility requirements. However, ALR land-use restrictions may affect the property's marketability and appraised value, both of which lenders consider when determining the maximum loan amount. Borrowers should consult directly with their lender and the ALC regarding any land-use restrictions that may influence their application.
Reverse mortgages in Canada are offered by federally regulated lenders and are subject to federal oversight; lenders are generally required to provide a cooling-off period and to ensure borrowers receive independent legal advice before finalizing the loan. In BC, the property interest is registered under the Land Title Act, providing public transparency of the mortgage charge. The BCFSA and RESA govern any licensed real estate professional involved in a related property transaction, but borrowers should consult the current guidance from the Financial Consumer Agency of Canada (FCAC) and a BC lawyer or notary public for the full scope of consumer protections applicable to their specific reverse mortgage product.
Canadian reverse mortgage lenders typically offer a no-negative-equity guarantee, meaning the borrower will not owe more than the fair market value of the home at the time it is sold, provided the borrower has complied with all loan obligations such as maintaining the property and paying property taxes. This guarantee is a contractual term of the specific reverse mortgage product and is not mandated by BC provincial statute, so borrowers should review their loan agreement carefully. Consulting a BC lawyer or notary public before signing is strongly recommended to ensure full understanding of the guarantee's conditions and limitations.
Verify the specific statutory language, thresholds, deadlines and current guidance directly with the governing authority: