Reverse Mortgage Case Study: Helping Family While Staying in the Home

David is a 68-year-old Ontario homeowner who has lived in his home for more than 30 years. The home is mortgage-free and has grown significantly in value over time.

While David was financially stable, a close family member faced unexpected financial hardship related to education and living expenses. David wanted to help — but not at the cost of his own retirement security.

The Challenge

David’s goals were clear:

• Provide financial support to a family member
• Avoid taking on monthly mortgage payments
• Remain in his home long-term
• Use his home equity responsibly

Traditional lending options would have required monthly payments or refinancing his home, which didn’t align with his retirement plans.

The Solution: A Reverse Mortgage

After reviewing his options, David chose a reverse mortgage.

This allowed him to:

• Access tax-free funds from his home equity
• Support his family member when it mattered most
• Avoid monthly repayment obligations
• Maintain full ownership of his home

He structured the reverse mortgage as a lump sum, giving him certainty and flexibility while protecting his cash flow.

The Outcome

David was able to help his family member without compromising his own financial stability. He continues living comfortably in his home and appreciates knowing that repayment won’t be required until the home is sold or his estate is settled.

As with all Canadian reverse mortgages, the loan is non-recourse — ensuring the balance will never exceed the home’s value.

Key Takeaway

Reverse mortgages aren’t only about retirement income — they can also be a strategic way to support loved ones while preserving independence and peace of mind.

The key is understanding how the product works and ensuring it fits within a long-term financial plan.

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