Not 55 yet?
The reverse mortgage's younger cousin.
Reverse mortgages start at 55. Below that, Fraction's no-payment mortgage does the same core job for a limited time. It is not a reverse mortgage, but it acts like one: your equity out, payments paused for up to five years, no age requirement, repaid when you sell or refinance on your schedule, with no penalty to repay in full, in BC, Ontario, and Alberta.
How it works
Equity-based, not age-based
Approval rests on the property and your equity in it, not your age. Credit and income are checked, but lightly: a score of 660 or more, and enough income to carry your other debts and the property taxes, with no mortgage payment to qualify for. That's why it works when a reverse mortgage's 55+ rule (or its guidelines) shut the door.
Payments pause, interest accrues
Just like its older cousin: no payments for up to five years, while the interest is added to the balance instead of billed to you each month.
A bridge, not a lifetime
The exit is a sale or a refinance on your schedule, within the term, with no prepayment penalties in BC, Ontario, and Alberta. It buys breathing room, not forever.
Terms vary by lender and property, and private pricing runs higher than bank pricing. That's the honest trade for skipping the income qualifying and the payments. We model the accrued balance against your exit before you sign, in writing, the same way we do for every reverse file.
What the lender publishes
The all-ages product we place is Fraction's no-payment mortgage. These are the terms on Fraction's own rate sheet, effective September 29, 2026: the rules, not the rates, which move every business day and which Ramin quotes to you in writing on the day.
How it is paid back
- No monthly payments at all. Interest is added to the balance and settled when the term ends or the home is sold.
- A term of 2, 3 or 5 years, with the interest rate fixed for the whole term.
- Interest is compounded daily, so the balance grows a little every day rather than in monthly steps.
- Repay the whole balance any time with no penalty, but it is all or nothing: partial prepayments are not accepted.
What it costs to set up
- A lender fee of 2% of the loan, added to the balance rather than paid up front, so it accrues interest too.
- An appraisal is required, and sometimes an inspection as well; legal fees are on top, as with any mortgage.
- Condominiums carry a slightly higher rate, and the lender lends a little less against them.
How much the lender will advance
- The loan, including the fee, is sized so the balance stays under 62.5% of the home's value at the end of the term.
- At funding that works out to about 55% of value on a 2-year term, 52% on 3 years and 46% on 5 years for the strongest credit tier, and a little less for the tiers below. These are estimates: the loan-to-value, how much of the home's value the lender will advance, depends on many factors, including location, the type of property, your personal credit and others. Ramin quotes it for your file.
- A credit score of at least 660 is needed, and the tier your score lands in sets both the rate and the ceiling.
- Loans up to $1,500,000, and the no-payment product stops there. Fraction's larger loans, up to $5,000,000, carry monthly interest payments instead.
Who and where
- British Columbia, Alberta and Ontario; freehold homes and condominiums.
- No age requirement: the lender looks at the property and the equity, not at how old you are.
- Your own home, owned in your personal name, not a company. A rental or mixed-use property is considered case by case, at a higher rate.
- A first mortgage only: it must be the only mortgage on the home, so anything already registered is paid out from it.
- Income is checked only to confirm you can carry your other debts and the property taxes. There is no payment to qualify for.
Source: Fraction's published rate card and its downloadable broker rate sheet, read on September 29, 2026. The sheet is written for licensed mortgage professionals and is not an offer of credit; the lender confirms every term against your file. Other private lenders write similar products on their own terms, and Ramin compares them for you.
When it's the right bridge
- You're under 55, equity-rich, and need the payment pressure off now
- A life event (separation, illness, a business gap) needs time to resolve without selling in a hurry
- You're outside reverse-mortgage guidelines and still want equity without a monthly payment
- There's a clear exit: a sale, an inheritance, a recovery, a refinance once income restarts
And when it isn't
If there's no realistic exit (no sale, no refinance, no income recovery on the horizon), pausing payments just delays a harder conversation while the balance grows. We'll say that plainly, and help you find the option that actually resolves things. If your income can carry a HELOC or refinance today, that's usually cheaper, and we'll show you that math first.
Asked about equity release under 55
Can I release equity from my home under 55 in Canada?
Yes, but not with a reverse mortgage: every reverse mortgage lender we place needs everyone on title to be 55 or over. Under 55, the product that does the same job for a term is Fraction's no-payment mortgage: your equity out, no monthly payments for 2, 3 or 5 years, interest added to the balance, no age requirement, on freehold homes and condominiums in BC, Alberta and Ontario.
What is the youngest age for a reverse mortgage in Canada?
55, and it applies to everyone on title, not only the older spouse. Below that, a reverse mortgage is closed on age however much equity you have, which is why this page exists.
How much can I get under 55 with no monthly payments?
Fraction sizes the loan, fee included, so the balance stays under 62.5% of the home's value at the end of the term. At funding that is about 55% of value on a 2-year term, 52% on 3 years and 46% on 5 years for the strongest credit tier, and a little less for the tiers below. These are estimates: the loan-to-value depends on many factors, including location, the type of property, your personal credit and others. Ramin quotes it for your file.
What does it cost?
A lender fee of 2% of the loan, added to the balance rather than paid up front, so it accrues interest too. An appraisal is required, sometimes an inspection as well, and your own lawyer's fee is on top. The interest rate is fixed for the whole term and compounded daily. You can repay the whole balance at any time with no penalty, but partial prepayments are not accepted. Rates are not printed here because they move every business day; Ramin quotes yours in writing.
Do I need good credit or income to qualify?
Both are checked, but lightly: a credit score of 660 or more, and enough income to carry your other debts and the property taxes. There is no mortgage payment to qualify for. Below 660, other private lenders write similar products on their own terms, and Ramin compares them for you.
Is this a reverse mortgage?
No. A reverse mortgage has no end date and is repaid when you sell, move out for good or pass away. This is a 2, 3 or 5-year mortgage with the payments paused: a bridge, not a lifetime product. The exit is a sale, a refinance or a new term, and Ramin models the balance against that exit before you sign. If there is no realistic exit, we say so plainly.
Under 55 and equity-rich?
Tell us the property, what you owe, and what the next five years look like. We'll map the equity-release option against every alternative and put the recommendation in writing.
In a hurry? Answer seven quick questions and Ramin calls you with your figure. About 3 minutes, no obligation.
Prefer to learn first? Join a free live webinar.