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Monthly income mortgage

The bank pays you every month instead of the other way around. Regular deposits to supplement your pension, for as long as you live in your home. No payments required from you.

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What is a monthly income mortgage?

With a regular mortgage, you pay the bank every month. This one works backwards. The bank pays you.

You pick an amount based on what you qualify for — $500, $1,000, $2,000 a month — and it shows up in your account like clockwork. We'll help you pick an amount that lasts as long as you need it to.

You never pay anything back while you're living there. The loan balance grows over time as you receive deposits, and the whole thing gets repaid when you sell the house, move out permanently, or pass away.

Your payments won't just stop without warning

We help you pick a monthly amount that works with your total approval, your age, and how long you need the income. If you'd rather take more now and have a shorter timeline, that's your call — but nobody gets surprised.

How it works

1. You choose your monthly amount

Based on your age, home value, and location, you're approved for a total loan amount. You and your broker figure out a monthly amount that aims to keep your total borrowing within your home's value, so the payments can keep coming for as long as you need them.

2. Payments start arriving

The bank deposits money into your account every month. Think of it alongside your CPP and OAS — one more line of income, except this one comes from your house.

3. You make no payments

You never pay the bank. The balance grows as you receive payments and interest compounds on what you've received. That's the trade-off for getting income now.

4. Repayment happens when you move

The total loan balance gets repaid when the house sells. Any remaining equity goes to you or your estate.

Mix monthly income with a lump sum

You're not limited to just monthly payments. Once approved for a total amount, you can structure it however you want. Take some as a lump sum for a specific need, set up monthly payments to supplement your pension, and keep the rest as a line of credit. It's all flexible.

Real examples of how people structure it

Monthly income only

Margaret (72, widowed, Calgary, $620,000 home) qualified for $250,000.

She set up $1,500/month to supplement her $1,800 pension. This gives her $3,300 monthly total — enough to cover bills comfortably and help with grandkids' birthdays. At this rate, payments will last about 13 years.

This example uses realistic numbers but is not an actual client story.

Lump sum + monthly income

Bill and Susan (69 and 67, Victoria, $780,000 home) qualified for $315,000.

They took $50,000 as a lump sum for a new truck and camper. Then set up $1,200/month to cover property taxes and utilities. The remaining amount stays as emergency access. They get the income they need plus one-time purchases covered.

This example uses realistic numbers but is not an actual client story.

What people use it for

Supplement pension income

CPP and OAS don't always keep up with what things actually cost. Monthly income from your home equity closes the gap so you're not constantly watching every dollar.

Keep up with real inflation

Your pension adjusts for inflation, but those numbers don't always match the costs a retired person actually feels — food, gas, property taxes, prescriptions. Your home value tends to track closer to what things really cost. That's equity you can put to work.

Keep doing what you enjoy

Restaurants, travel, golf, and visits with the grandkids. You shouldn't have to cut back on the things that make retirement worth it just because your pension is tight.

Delay CPP or investments

Use home equity income now so you can wait to take CPP until 70 (bigger cheques) or let your investments sit a few more years before drawing down.

Pay for ongoing care

Cleaning service, lawn care, meal delivery, or a part-time aide. Monthly income from your equity pays for the help that keeps you comfortable in your own home.

Help family regularly

Send your grandkids birthday money. Help your daughter with daycare. Chip in where it matters without watching your savings shrink every month.

Grandmother enjoying time with her great-grandchild

How long do the payments last?

That depends on three things: how much you qualify for, how much you take each month, and the interest rate.

Quick math that surprises people: if you qualify for $200,000 and take $1,000/month, you won't get 200 months of payments. Interest compounds on the growing balance, so realistically you'd get about 12-13 years at current rates.

You can start with a lower monthly amount and increase it later (up to your approved limit). Or take a higher amount knowing the payments will stop sooner. Your call.

Example timelines for a $200,000 approval:

Monthly payment Approximate years of payments Who this works for
$800/month ~15 years Smaller supplement, longer timeline
$1,200/month ~11 years Balanced approach
$2,000/month ~7 years Higher income, shorter timeline

Based on ~7.5% interest rate. Actual timeline varies.

The parts people worry about

The payments don't last forever

Unless you choose a very small monthly amount, the payments will eventually stop when you hit your approved limit. That said, most retirees eventually start drawing down savings and investments anyway — this just uses your home equity instead. You need a plan for what comes after. Some people downsize at that point. Others have enough from CPP, OAS, or other sources by then. Either way, think it through before committing.

Your debt grows every month

Each payment you receive adds to your loan balance, and interest compounds on the growing total. A $1,500/month payment becomes roughly $300,000 of debt after 12 years (including interest). That's $300,000 less equity in your home.

Will it affect my government benefits?

No. Reverse mortgage payments aren't income — they're a loan against equity you already own. They won't affect your CPP, OAS, or GIS. People worry about this one a lot, but it's a non-issue.

Setup costs eat into your total

Appraisal fees, legal fees, and setup costs run $2,000-$4,000 and get deducted from your approved amount. So if you qualify for $200,000 but have $3,000 in costs, you're really starting with $197,000 for monthly payments.

Who this product works for

Good fit if you:

  • ✓ Need regular income, not a lump sum
  • ✓ Want to stay in your home long-term
  • ✓ Have plenty of equity but not much cash coming in
  • ✓ Struggle to cover monthly expenses on pension alone
  • ✓ Like knowing exactly what's coming in each month
  • ✓ Are okay with the debt growing over time

Not ideal if you:

  • ✗ Need a large lump sum for a one-time expense
  • ✗ Still owe a lot on your current mortgage (it gets paid off first, leaving less for you)
  • ✗ Want to leave as much as possible to your kids
  • ✗ Don't have a plan for when payments stop
  • ✗ Don't like the idea of owing money

This is specifically about monthly income. If you need a one-time lump sum instead, a payment optional mortgage might be a better fit. Same home equity, different structure.

Find out how much of your home's equity you can access.

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This stuff can be confusing — we're happy to walk you through it. Call us at 250-832-2513
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How we help

We're brokers, which means we work for you. We compare all three Canadian reverse mortgage lenders (HomeEquity Bank, Equitable Bank, and Bloom Finance) to get you the best rate and terms.

We'll be straight with you about whether monthly income makes sense. Sometimes a lump sum is better. Sometimes you should wait a few years. Sometimes your kids should just help out. We're not here to sell you something that doesn't fit.

We'll also walk you through the timeline honestly: how long the payments will last, what happens when they stop, and whether that lines up with your plans.

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Compare your options

Monthly income isn't the only way to access your home equity. Here's how it compares:

Product Best for You get Payments
Payment Optional Lump sum needs One-time payment Your choice
Monthly Income Supplementing pension Regular monthly payments None required
Home Equity LOC Ongoing access to funds Credit line to draw from Monthly interest
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Common questions

What happens when the payments stop?

The monthly payments stop when you reach your approved limit. You can still stay in your home as long as you want, you just won't receive more income. A lot of people plan to downsize at that point, or they've got other income coming in by then (CPP at 70, an inheritance, that kind of thing). And if your home value has gone up enough since you started, you may be able to qualify for more.

Can I change my monthly amount?

Yes, usually. You can often increase or decrease your monthly payment (within your approved limit) by contacting the lender. Some lenders charge a small fee to make changes. You can also pause payments temporarily if needed.

Does this affect my government benefits?

No. Reverse mortgage payments are a loan, not income. They don't affect your CPP, OAS, or GIS.

See all questions about reverse mortgages →

Want to know what you'd get each month?

We'll help you figure out what monthly payment makes sense for your situation and how long it can last. No pressure, just math and honest conversation.

Calculate monthly income Call us: 1-888-884-4445