A straight answer
Every alternative to a reverse mortgage, compared like with like.
There are six ways to get at the money in your house, and a reverse mortgage is only one of them. We price the others on every file, because for some people one of them is plainly the better answer — and when it is, that is what the written recommendation says. Here are all six, the same four questions asked of each.
At a glance
The five options that raise money, on the four things that decide between them. The detail, and the honest "we'd steer you elsewhere when…" for each, follows below.
- Sell & downsize
- How much of the home
- All of it, less selling costs
- Monthly payment
- None
- Income test
- None
- Interest
- None
- Mortgage / refinance
- How much of the home
- Up to 80%
- Monthly payment
- Required
- Income test
- Full, with stress test
- Interest
- Standard
- Credit line
- How much of the home
- Up to 65%
- Monthly payment
- Required
- Income test
- Full, with stress test
- Interest
- Lower; usually variable
- Private lender
- How much of the home
- Varies by lender
- Monthly payment
- Paused, for a term
- Income test
- Property, not income
- Interest
- Higher; added to the balance
- Reverse mortgage
- How much of the home
- 12–55%, by age
- Monthly payment
- None
- Income test
- None
- Interest
- Higher; compounds if unpaid
| Option | How much | Monthly payment | Income test | Interest |
|---|---|---|---|---|
| Sell & downsize | All of it, less selling costs | None | None | None |
| Mortgage / refinance | Up to 80% | Required | Full, with stress test | Standard |
| Credit line | Up to 65% | Required | Full, with stress test | Lower; usually variable |
| Private lender | Varies by lender | Paused, for a term | Property, not income | Higher; added to the balance |
| Reverse mortgage | 12–55%, by age | None | None | Higher; compounds if unpaid |
Limits are the regulator's published maximums and typical ranges — reviewed September 2026 — and no rate is printed here because rates move. Your own figures depend on age, property, location, lender and product, and come in writing.
The six, one by one
The same four questions of each: what it gives, what it costs, who it fits — and where we would steer you elsewhere.
Do nothing
- What it gives
- No debt, no fees, nothing signed.
- What it costs
- Whatever the problem was keeps its price: a mortgage payment that no longer fits, repairs that wait, or family who needed help this year rather than in ten.
- Who it fits
- The need is small, or short, or not really a need yet.
- Where we'd steer you elsewhere
- When the numbers show the problem is growing faster than the house is — then doing nothing is the expensive option, and one of the five below is cheaper.
Sell and downsize
- What it gives
- The most money of any option, at zero interest — no debt, nothing compounding.
- What it costs
- Commission, land transfer tax, legal fees and the movers come off the top — and you leave the home and the neighbourhood.
- Who it fits
- The house is more than you want to look after, or the equity is needed in full.
- Where we'd steer you elsewhere
- When you want to stay. Staying is a legitimate goal, and the four options below exist to serve it.
A normal mortgage or refinance
- What it gives
- Up to 80% of the home's value at standard rates — the most borrowing of any loan here.
- What it costs
- Full income qualifying and a required monthly payment. More money, more obligation.
- Who it fits
- Your income carries the payment comfortably and you want the lowest rate available.
- Where we'd steer you elsewhere
- When the payment would strain a pension. That is precisely the situation the reverse product was designed for.
A credit line (HELOC)
- What it gives
- Up to 65% of the value, at a lower rate than a reverse mortgage almost every time. Borrow, repay, borrow again.
- What it costs
- A payment every single month, full income qualifying with the stress test, and a rate that is usually variable and will move.
- Who it fits
- You qualify comfortably and the payment is no strain — usually the cheaper answer, and we say so.
- Where we'd steer you elsewhere
- When qualifying or cash flow is the problem, or when a missed payment would put the home at risk.
A private or alternative lender
- What it gives
- Equity out without income qualifying — and on the equity-release product, payments paused for up to five years, at any age.
- What it costs
- Private pricing runs higher than bank pricing, the interest is added to the balance, and it is a bridge with a term, not a lifetime: the exit is a sale or a refinance.
- Who it fits
- A life event that needs time to resolve without a forced sale — or a homeowner under 55, or outside reverse guidelines, with a clear exit.
- Where we'd steer you elsewhere
- When there is no exit. A bridge needs a far bank.
A reverse mortgage
- What it gives
- Typically 12% to 55% of the value depending on age, tax-free, with no monthly payment, no income test, and a guarantee you never owe more than the house.
- What it costs
- A rate typically 1.5 to 2.5 points above a 5-year fixed, compounding if you pay nothing — and set-up costs paid from the advance: legal work (about $1,500–2,500), independent legal advice (about $400–800), the appraisal.
- Who it fits
- You are 55 or over, you are staying, and a payment would not fit — or you simply refuse to take one on in retirement.
- Where we'd steer you elsewhere
- When a credit line fits comfortably, when you will sell within a couple of years, or when keeping every dollar of the estate is the top priority.
How we actually choose between them
Two questions do most of the work. Can the household carry a monthly payment comfortably? If yes, a credit line or a refinance is usually cheaper, and we say so. If no — because the income is a pension, or a payment would mean a missed one — the options without a payment are the honest shortlist. And do you want to stay? If not, selling frees more than any loan and costs no interest; if so, the choice is between the reverse mortgage and, for a limited time, the private product.
Then the numbers, year by year, for the two or three that survive — the equity projection, the credit-line comparison and the downsizing comparison are the same tools we use — and a written recommendation. When the recommendation is "not a reverse mortgage", that is what it says.
Asked about the alternatives
Is a credit line always cheaper than a reverse mortgage?
If your income qualifies and the payment is comfortable — often yes, and we will tell you so. A credit line almost always carries a lower rate. The reverse products earn their place when qualifying or cash flow is the problem: no stress test, no payment, no risk of a missed-payment default. We run both numbers before recommending either.
Can I keep my credit line and add a reverse mortgage?
Generally not at the same time. A reverse mortgage usually requires any existing mortgage or credit line secured by the home to be paid off and closed, so it comes out of the money raised. The credit-line comparison shows what that does to the amount you actually receive.
What if I'm under 55?
There is an all-ages private equity-release product: no payments for up to five years and no prepayment penalties (BC, ON and AB), with interest accruing onto the balance and repayment on sale or refinance. Terms vary by lender and property; it's a bridge product rather than a lifetime one.
Isn't selling always the cheapest?
It is the only option with no interest at all, and it frees the most money. It is not free: commission, land transfer tax, legal fees and movers come off the top, and you leave the home. Whether that beats staying and borrowing depends on your numbers and on how long you would stay — which is exactly what the downsizing comparison works out.
The questions people ask before they call
What's the catch? →
Compounding — shown year by year, with what softens it and when it outweighs the benefit.
Is it a rip-off? →
The price, itemised, against what it buys — and the cases where a cheaper tool wins.
Are the rates too high? →
Why the rate is higher, what one point does over 25 years, and the lever that matters more.
What does it cost? →
Every item, from the lenders' own published figures — and the one that is hard to defend.
Want the six priced for your own house?
Bring your numbers — or just the questions. We model the options you could actually use, side by side, and put a written recommendation in front of you. If the cheapest one isn't a reverse mortgage, the recommendation says so.
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