What Can You Use a Reverse Mortgage For? 8 Smart (and Fun) Ways to Spend It
So, you’ve built up equity in your home — and you’re considering a reverse mortgage. You know it’s a tax-free way to access funds without selling or moving. But what can you actually use the money for?
The answer: almost anything.
A reverse mortgage gives you the freedom to enjoy retirement your way — whether that means covering essentials, upgrading your home, or finally checking a few things off your bucket list.
Here are 8 smart (and fun!) ways Canadians are using their reverse mortgage funds.
Renovate or Future-Proof Your Home
Thinking about updating your kitchen? Need a safer bathroom with a walk-in shower? Want to install a stair lift or widen doorways to make your home more accessible as you age?
Many homeowners use reverse mortgage funds to make their homes more comfortable, functional, and long-term friendly — especially if they plan to age in place.
2. Cover Monthly Living Expenses
Between groceries, property taxes, medications, and rising utility costs, even homeowners with no mortgage can feel stretched.
Using a reverse mortgage for day-to-day living expenses can provide the breathing room you need — without touching investments or relying on credit cards.
3. Pay Off Debt
Still carrying a balance on your credit card or a lingering personal loan? You’re not alone.
Many Canadians 55+ use their reverse mortgage to consolidate and eliminate high-interest debt. That means less stress and fewer monthly payments.
4. Help Your Family (Without Hurting Your Finances)
Whether it’s helping your child with a down payment, supporting your grandchild’s education, or assisting with a family emergency — reverse mortgage funds let you be generous without sacrificing your own financial stability.
It’s a way to give while living, without feeling like you’re giving up your retirement.
5. Travel or Enjoy Leisure Time
Always wanted to see Paris? Take a train across Canada? Visit family in another province?
Retirement is for living — and reverse mortgage funds can help you create those once-in-a-lifetime memories. After all, you’ve earned it.
6. Delay Drawing from Investments
Many financial planners recommend using a reverse mortgage as a buffer to delay withdrawals from RRIFs or other investments — especially during down markets or to reduce tax exposure.
This strategy allows your portfolio to grow while providing stable, tax-free income in the meantime.
7. Fund In-Home Care or Medical Expenses
If your needs are changing and you’d prefer to receive care at home instead of moving into a facility, reverse mortgage funds can help pay for personal support workers, nurses, medical equipment, or mobility modifications.
8. Build an Emergency Fund
Peace of mind has value too. Some homeowners choose to open a reverse mortgage line of credit — drawing only what they need, when they need it — and keeping the rest as a financial cushion for the unexpected.
Whether it’s for a leaky roof, a health issue, or helping a loved one in crisis, having accessible funds brings confidence and calm.
Final Thoughts
Your home equity isn’t just a number on paper — it’s a resource you can use to support your lifestyle, goals, and peace of mind.
A reverse mortgage puts that equity to work in a flexible, tax-free way. Whether you’re focused on security, comfort, or making the most of retirement, the choice is yours.
Ready to explore your options? Talk to a Legacy Unlocked advisor for a free, no-pressure consultation — and discover how your home can support your best years yet.
