Reverse Mortgage in Quebec — Complete Guide 2026

Verified by OACIQ — Updated on July 1, 2026

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A reverse mortgage is a financial product designed for homeowners aged 55 and over who want to access the value accumulated in their property without having to sell or make monthly payments. In Canada, HomeEquity Bank's CHIP product is the best known, but other options exist.

The principle is simple: you borrow a portion of your property's value (up to 55%), interest accumulates on the balance, and you repay everything when the property is sold or upon death. You remain the owner and continue to live in your home.

Key Points

Eligibility — minimum 55 years

Both spouses must be 55 or older if the property is jointly owned. The older you are, the higher the accessible percentage (from 15% to 55%).

Maximum amount: 55% of value

The accessible amount depends on your age, location and property value. On a $700,000 home, the maximum would be $385,000.

Higher interest rates than conventional

Reverse mortgage rates are generally 1.5% to 2.5% more than a conventional mortgage. In 2026: about 6.5% to 8%. Interest accumulates on the growing balance.

You keep ownership

In Canada, the law guarantees you can never owe more than your property's value (CHIP Negative Equity Guarantee). You remain the owner until the sale.

Reverse Mortgage vs Home Equity Line of Credit

Category	Value
Monthly payments required	No (reverse) / Yes interest (HELOC)
Typical rate	6.5–8% (reverse) / 5% (HELOC)
Age required	55+ (reverse) / None (HELOC)
Bank qualification	No (reverse) / Yes (HELOC)
Maximum	55% value (reverse) / 65% (HELOC)
Balance growth	Yes (reverse) / No if paid (HELOC)

Frequently Asked Questions

When is reverse mortgage repayment required?+

A reverse mortgage becomes repayable in 3 situations: property sale, permanent relocation (senior residence, etc.) or death of both borrowers. Heirs then generally have 6 months to sell or refinance.

Can you lose your home with a reverse mortgage?+

No, as long as you meet your obligations: live in the property as your primary residence, maintain up-to-date insurance and pay property taxes. The CHIP Negative Equity Guarantee ensures you'll never owe more than the home's value.

Does a reverse mortgage affect my government benefits?+

Funds received via a reverse mortgage are not considered taxable income. However, if the funds generate investment income, that income is taxable. Consult a tax advisor for your specific situation.

Are there alternatives to reverse mortgage for retirees?+

Yes. The Home Equity Line of Credit (HELOC) often offers a lower rate, but requires monthly interest payments and bank qualification. Refinancing also frees up capital but involves payments. An OACIQ broker compares all options.