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If you own a home in Canada and are over 60, you may be able to access cash without selling or moving. Use the form above to see what you qualify for in about 60 seconds.
Below, we compare the three most common ways Canadian seniors tap home equity in 2026: HELOC, refinancing, and reverse mortgage.
The right one depends on your age, home value, mortgage balance, and income needs. This guide covers all three options and helps you identify which fits your situation.
Three options, three trade-offs
HELOC is the most common. You borrow against the home equity and only pay interest on the amount you use. The home is not sold, and you can pay the balance at any time.
The trade-off: the interest rate is typically variable, so the monthly payment can change with the prime rate.
Refinancing replaces your current mortgage with a new one at a higher amount, and you receive the difference in cash.
The trade-off: the new mortgage may have a higher rate and a longer term. This increases the total cost over the life of the loan and reduces your monthly flexibility if rates later fall.
Reverse mortgage is a loan against the home that does not require monthly payments. It is repaid when the home is sold, refinanced, or the last borrower passes away.
The trade-off: interest compounds over time and the equity remaining in the home for the heirs is reduced or eliminated.
| Option | Best for | Risk |
|---|---|---|
| HELOC | Ongoing access, flexibility | Foreclosure if payments missed |
| Refinancing | One-time cash withdrawal | Foreclosure if payments missed |
| Reverse mortgage | No monthly payments, stay in home | Reduced equity for heirs |
How to choose the right option
HELOC fits if you want ongoing access to cash, you can make monthly interest payments, and you want to preserve the option to pay the balance at any time.
It is the most common option for Canadian seniors with stable fixed income and modest cash needs. The credit limit can be redrawn as you repay it.
Refinancing fits if you want a specific lump sum, you can handle a higher monthly payment, and you want to keep the loan structure simple.
It is best for one-time needs (home improvement, debt consolidation, large purchase) where a single payout solves the problem.
Reverse mortgage fits if you do not want monthly payments, you want to stay in the home long-term, and you are not concerned about reducing the equity for heirs.
The interest is added to the loan balance each month and is repaid from the sale proceeds when you move or pass away.
What to do next
Both home equity and debt relief are competitive markets. Get at least two quotes, understand the long-term cost, and confirm the impact on OAS or GIS before signing anything.
Most advisors offer a free initial consultation with no obligation. The practical first step is a free eligibility check (about 60 seconds, no impact on your credit score) to see which option fits.
Before signing, ask each advisor the same questions:
- What is the total cost over the life of the loan?
- What is the monthly payment?
- What is the impact on the estate?
- What happens if rates rise or you miss a payment?
Comparing offers side by side is the single best way to avoid an expensive mistake.
What is the minimum age to access home equity in Canada?
Can I lose my home if I take out a HELOC?
Is this guide an official Government of Canada publication?
Independent guide. Not affiliated with any home equity lender. The information in this guide is editorial. The home equity options are offered by private lenders; confirm details on the official lender websites before acting on any information here.
