In this educational video, Ben McCabe, Founder and CEO of Bloom Finance Company, breaks down everything Canadians need to know about reverse mortgages – including how they work, who qualifies, and whether the funds you receive are taxable.
What Is a Reverse Mortgage?
A reverse mortgage is a financial product that allows Canadian homeowners aged 55 and over to access a portion of their home’s equity without having to sell their property or make monthly mortgage payments.
Instead, the homeowner receives the funds as a lump sum, recurring payments, or a line of credit — while continuing to live in their home. The loan is repaid only when the homeowner sells the property, moves out, or passes away.
As Ben explains, reverse mortgages are designed to help retirees and older homeowners unlock home equity to supplement their income, cover living expenses, or fund personal goals like travel, renovations, or supporting family.
Who Qualifies for a Reverse Mortgage?
According to Bloom Finance, qualification is typically based on the following factors:
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You must be 55 years of age or older.
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The home must be your primary residence in Canada.
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The amount you can borrow depends on your home’s appraised value, location, and age of all homeowners on title.
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Unlike traditional loans, your income and credit score are less significant — home equity is the main factor.
Ben notes that the process is simple and transparent, with professional advice available to ensure homeowners understand all their options before committing.
Are Reverse Mortgage Funds Taxable?
One of the key advantages Ben highlights is that reverse mortgage proceeds are not considered taxable income. That means homeowners can access funds without impacting government benefits like OAS or CPP.
This makes a reverse mortgage an effective and tax-efficient tool for managing retirement finances — especially for Canadians who are “house rich but cash poor.”
Why Choose Bloom Finance
Bloom is a Canadian fintech company dedicated to helping retirees access home equity easily, securely, and responsibly. With a fully digital application process, transparent pricing, and personalized service, Bloom makes reverse mortgages simpler and more accessible for modern Canadian homeowners.
Our Take
Reverse mortgages can be a powerful financial planning tool when used strategically. With experts like Ben McCabe and platforms like Bloom Finance, Canadians have more flexibility than ever to make the most of their home’s value while staying in the place they love.
Watch the full video above to hear Ben McCabe explain how reverse mortgages work.
Learn more about Bloom Finance Company at bloomfin.ca.
Explore the Reverse Mortgage section on Smarter Loans for tools, guides, and verified lenders across Canada.
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Smarter Loans is Canada's online loan directory for any type of financing. The website helps Canadians find reputable lenders & financial companies all over Canada and compare their products, rates, and terms in one place.
