What reverse mortgage lenders want brokers to know

As Canada’s reverse mortgage market continues to grow, lenders say brokers have an opportunity to serve more older homeowners, but success requires a deeper understanding of the products, borrowers’ needs and the misconceptions surrounding them.

That was a central message from a virtual panel featuring representatives of Canada’s four reverse mortgage providers, who shared advice on identifying potential clients, explaining borrowing options and addressing common concerns about tapping home equity in retirement.

“I don’t think we’re competing between ourselves,” said Bloom Finance business development manager Andre Da Silva. “We’re competing against the myths that exist in terms of what a reverse mortgage is, and that’s what we’re here to do today.”

Canada’s reverse mortgage market has grown significantly, with outstanding balances reaching $10.9 billion by mid-2026, according to OSFI data. Yet misconceptions about the products persist among both brokers and consumers, prompting lenders to step up their education efforts.

Why homeowners turn to reverse mortgages

The most common use for a reverse mortgage, according to Da Silva, is getting out of a challenging cash flow situation in retirement.

“They’re on a fixed income, unable to afford their mortgage payments, they might be underwater, and now they’re reviewing all options, so they come to us,” he says.

Many seniors are also using a reverse mortgage to help support family members, such as by helping their children or grandchildren purchase their first homes.

“If [brokers] have got a client that needs a down payment in order to make their first purchase — because remember, one-third of first-time home buyers are knocking on the bank of mom and dad for that down payment — we’re seeing [brokers]… engaging the parents and getting them into a reverse mortgage as well,” said Miranda Dunsmuir, a business development manager for Bloom.

Reverse mortgages vs. HELOCs

Home equity lines of credit (HELOCs) also allow Canadians to access the equity in their homes, typically at a lower interest rate than a reverse mortgage. However, the best option depends on a borrower’s income, ability to make payments and long-term financial needs.

EQ Bank regional channel manager Clifford Choy says that a HELOC is the better option for those still earning a traditional, salaried income, but not necessarily for those on a fixed income.

He explains that making payments on a HELOC could require borrowers to draw down other assets, such as investments, or even sell their home, potentially triggering tax consequences. Depending on their circumstances, withdrawing taxable investment income could also affect their Old Age Security benefits.

“In those situations, when you replace it with a reverse mortgage, not only do they [still have] a place to stay, but the money growing on the home is tax free, and it won’t impact their CPP or OAS,” he says.  

“The main difference is with a reverse mortgage there is no obligation to make payments,” added Suzanne Meleady, an account executive for Home Equity Bank. “Our clients have the choice to make the monthly interest payments if they wish, but that’s not an obligation.”

What lenders wish brokers knew

Panelists emphasized that their job is to help brokers help their clients, with many expressing a desire to improve that relationship.

“I would love to see the broker community kind of diving in a little more in terms of asking those tougher questions to the BDM [business development manager], even leveraging us to go out with them to talk to their realtors, or even when they discuss it with their clients,” said Home Trust Ontario regional sales director Kyle Hall.

Dunsmuir of Bloom says brokers should listen for certain cues that could prompt a conversation about reverse mortgages.

“Whether it’s that they’re over the age of 55, or that their mortgage payments are a little bit tight for them,” she says, adding that many Canadians don’t know that their broker can help them with a reverse mortgage. “They’ll see a commercial for CHIP, or they’ll Google something, like, ‘I can’t afford my mortgage,’ and they’ll come straight to us, so I wish more brokers knew that, and reviewed it with their senior clients.”

Choy emphasized the importance of understanding how older homeowners view debt. Many have spent much of their working lives paying down their mortgages, with the goal of eventually leaving their homes to their children.

“When you tell them that they should borrow money to have a better life, they may not take it,” he says, adding that brokers need to prepare the next generation to take a different approach. “’Hey mom, if you’re not eating well, what’s going to happen to your health? Your health is going to go down. When health goes down, who needs to take care of you? I have to look after you. When I’m taking care of you, do I have time for your grandchild?’ This is how you need to change the conversations.”

Addressing common misconceptions

Among the most persistent misconceptions about reverse mortgages are fears that the lender will take ownership of the borrower’s home or that little equity will remain to pass on to the next generation.

To help address those concerns, reverse mortgage providers offer online calculators that allow homeowners to explore potential borrowing scenarios and their long-term implications.

Such tools invite homeowners to map out various scenarios to see what their remaining balance will be after any length of time, based on potential changes to their home’s value in the interim.

“Having that conversation and putting it into a tangible document that you could review together with the client and family and advisors, it very easily shows the progression and increasing balance on the reverse, comparative to their home value,” Da Silva said, adding that it’s important to share that document early on in the process. “If we’re exploring this option, I want to be upfront with you and extremely transparent that this is what your expected mortgage balance will be in 10 years.”

“Once they have that education, you’re getting a lot less of the ‘I don’t want to lose my house,’” says Hall of Home Trust, adding that it’s important to demonstrate potential offramps. “We have a repayment penalty but after year five, if you just give us written notice, you can waive the three-month interest penalty that would be pertaining to that reverse mortgage, so at the end of the day you’re not locked in with us, and there’s never a point where you’ve signed over your house.”

How brokers can reach potential reverse mortgage clients

As the reverse mortgage market grows, brokers entering the segment may need to rethink how they market their services and connect with potential clients.

While many brokers rely on platforms such as Instagram and TikTok to promote their services, those channels may be more effective for reaching the children and grandchildren of potential reverse mortgage clients. Panelists suggested that Facebook could be another useful platform for connecting directly with older homeowners.

While social media can be an asset, panelists also emphasized the importance of referrals from friends and family, in-person networking at seniors’ events, and developing partnerships with other finance professionals in their orbit.

Realtors are one potential referral source, given their relationships with homeowners who may benefit from accessing their equity. Financial advisors can also play a role. “Financial advisors are huge,” added Dunsmuir. “They don’t want to give up their assets under management, and this is a great alternative.”

Panelists also noted that lenders all offer marketing and informational materials ready to download from their websites and share with prospective clients.

Regardless of how brokers find potential clients, Dunsmuir emphasized the importance of understanding reverse mortgage products and assessing each client’s needs before recommending a solution.

“You need to have a good understanding, so when you approach these people, you are communicating clearly and effectively, like you are the expert,” she said.

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Last modified: October 22, 2026