Reverse mortgages have been available in Canada for decades, yet misconceptions about how they work are remarkably common. Some stem from outdated information. Others come from confusion with American products that operate differently. And some are simply passed along by well-meaning family members who haven't looked into the details.

Here are the five I hear most often — and the truth behind each one.

The truth: You remain the registered owner of your home throughout the life of the reverse mortgage. The lender holds a mortgage against the property — the same as any other mortgage — but title stays in your name.

You can renovate, rent out a suite, or leave the home to your children in your will. The lender has no claim to ownership.

The truth: Canadian reverse mortgage lenders are required to offer a no negative equity guarantee. This means that when the loan comes due, you (or your estate) will never owe more than the fair market value of the home at that time — regardless of how much interest has accumulated.

This protection is built into every reverse mortgage in Canada. It's not optional or conditional.

The truth: Most reverse mortgage borrowers access well under the maximum available amount. The average Canadian reverse mortgage represents roughly 25–30% of the home's value. If your home appreciates over time — as Canadian real estate has historically done — your estate may still receive substantial equity.

That said, it's worth having an honest conversation with your family about your plans. Many adult children, when they understand the full picture, are supportive — especially when the alternative is a parent struggling financially.

The truth: Many reverse mortgage clients are financially comfortable. They use the product strategically — to fund home renovations, help a child with a down payment, travel, or simply improve their quality of life without drawing down their investments.

A reverse mortgage is a financial planning tool, not a sign of financial distress.

The truth: Reverse mortgage rates in Canada are higher than standard mortgage rates — typically 1–2% above a conventional 5-year fixed rate. This reflects the additional risk the lender takes on (no monthly payments, no income qualification, no negative equity guarantee).

Whether that premium is "worth it" depends entirely on your situation. For someone who would otherwise need to sell their home or take on monthly debt payments, the cost of a reverse mortgage may be very reasonable.

The best way to cut through the myths is to look at the actual numbers for your specific situation. Every homeowner's circumstances are different, and what works well for one person may not be the right fit for another.

Book a free, no-obligation consultation and I'll walk you through exactly how a reverse mortgage would work for you — including the costs, the trade-offs, and the alternatives.