Reverse Mortgage follow up

Tracy Head • February 23, 2026

Not long after my last column about reverse mortgages went live I received a thoughtfully written email from a reader challenging several of the points I made in my article.



He raised concerns about the cons around reverse mortgages and said he felt that I wasn’t diving into the potential negative impacts of reverse mortgage products.


Most of the concerns boiled down to the erosion of equity in seniors’ most significant asset due to the compounding of interest over time. He felt that I didn’t show any calculations so people would not see the long-term cost of a reverse mortgage.

When I work with my reverse mortgage clients I show them projections that include the interest cost. What people may not consider is the appreciation in value of homes over time. 


Reverse mortgage lenders don’t automatically go to the maximum allowable amount for every client (ie: “up to 55% of the value of the home”). Mortgage size is determined by the age of the client and the type and location of the home that they are in so as not to erode all of the equity in the home. Mortgages are done on a sliding scale so the younger they are the less equity clients have access to.


The other piece to understand is that not every client pulls the entire amount they are approved for upfront.  I encourage my clients to only pull what they require at the time and to have the rest available for if and when they need it.


Initially I was not a huge fan of reverse mortgages for a lot of the reasons that he shared. However, I have many clients who are house rich with very limited income. People living on CPP and OAS can’t afford the basic necessities never mind any frills. 

Which leads to another reason I see the value in reverse mortgages. Many of the clients I work with have overextended themselves using credit cards or personal lines of credit and are in the position that they are making the minimum payment on their credit facilities by applying for more credit cards or loans, which leads to a spiral of increasing balances month over month with no way to repay these debts.


Downsizing doesn’t always work because moving to a smaller home often means now they have a strata payment. Even if they downsize and have cash in the bank to cover living expenses, the end result is that they are still eroding that equity and now are not in the home they spent their lives in.


I’ve seen reverse mortgages impact seniors in positive ways that you can’t even imagine. I’ve had clients supporting their middle-aged children while not having money to buy groceries. I’ve worked with clients who have needed to renovate their homes for accessibility issues due to health concerns as they age. I’ve seen clients leverage the equity in their homes to buy vacation homes. 

There are many types of clients who use reverse mortgages to achieve their financial goals. I do find that some of the loudest objections come from the families of clients. In these situations I first ask my clients if their families know the true extent of their financial distress.


Next I ask if they would like to include trusted family members in the conversation so that we can address any concerns so that everyone is on the same page.


Not all reverse mortgage clients are naïve. Many have already done their homework before they call.

Tracy Head

Mortgage Broker

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Refinance to Consolidate debt

By Tracy Head • May 30, 2026
When Debt Keeps You Up at Night, Your Home Equity May Offer a Way Forward As a mortgage broker, I’ve sat across the table from hundreds of Canadians carrying more stress than they let on. Sometimes it starts with a few credit cards after the holidays. Sometimes it’s a line of credit that slowly grows over time. Other times it’s unexpected life events — job loss, divorce, rising grocery bills, helping adult children, or simply trying to keep up in an increasingly expensive world. What many people don’t realize is how common this has become. There is often a quiet sense of shame attached to consumer debt. People feel embarrassed admitting they’re struggling, especially if they’ve always been financially responsible. I regularly hear clients say things like, “I never thought I’d be in this position,” or “I feel like I’ve failed.” But needing help does not mean you’ve failed. It means you’re human. One of the most effective tools available to homeowners is refinancing a mortgage to consolidate high-interest debt. By using equity in the home to pay off credit cards, personal loans, or lines of credit, many Canadians are able to dramatically lower their monthly payments and finally breathe again. The financial math is straightforward. Credit cards often carry interest rates around 20 percent or higher. Mortgage rates are typically much lower. Rolling multiple high-interest debts into one manageable mortgage payment can free up monthly cash flow and reduce financial pressure almost immediately. But the emotional impact is often even more important.  I’ve watched clients physically relax during meetings once they realize there is a realistic path forward. Instead of juggling minimum payments and watching balances barely move, they regain a sense of control. They sleep better. Relationships improve. The constant anxiety starts to ease. The key, however, is timing. Too many people wait until they are already in serious financial trouble before exploring refinancing options. They drain savings, miss payments, max out credit cards, or fall behind on bills while hoping things will somehow improve on their own. Unfortunately, once credit scores begin to drop significantly, refinancing becomes more difficult and more expensive. That’s why I encourage homeowners to have the conversation early — before missed payments happen, not after. A strong credit profile gives borrowers more options, better rates, and greater flexibility. Waiting too long can limit those choices considerably. Seeking advice early is not a sign of weakness; it’s smart financial planning. It’s also important to understand that refinancing should not be viewed as a “last resort.” In many cases, it is simply strategic debt management. Business owners do it. Professionals do it. Young families do it. Retirees do it. Millions of Canadians have used the equity in their homes to simplify their finances and regain stability. Of course, refinancing is not a magic solution. It works best when paired with honest budgeting and a commitment to avoiding the same debt cycle moving forward. But for many homeowners, it can provide the reset they desperately need. If you are losing sleep over debt, know this: you are far from alone, and there are often more options available than you think. The hardest part is usually making the first phone call.

Importance of a PreApproval

By Tracy Head • May 16, 2026
There’s a moment I see all the time in this business. A buyer walks into an open house “just to look,” falls completely in love with the place, and by supper time they’re talking about writing an offer. It’s exciting. It’s emotional. And sometimes, it’s exactly where people get themselves into trouble. I can tell you one of the smartest things a buyer can do before house hunting is get a proper mortgage pre-approval in place. Not the casual “I think we qualify for around this amount” conversation. I mean an actual reviewed pre-approval with income, down payment, credit, and monthly budget all looked at carefully. Because once you’re standing in someone else’s dream kitchen imagining where your coffee maker will go, logic has a funny way of leaving the building. A pre-approval does a few very important things. First, it tells you what a lender is likely willing to lend you. That sounds obvious, but many buyers are shocked to discover that what they want to spend and what the bank is comfortable approving are two very different numbers. Second, it helps you shop with confidence. In competitive markets, sellers take pre-approved buyers much more seriously. A seller who has two similar offers in front of them will almost always feel more comfortable with the buyer who already has financing lined up. But here’s the part I think matters even more — a pre-approval gives you the chance to figure out what home ownership will actually feel like every month. And this is where many people make a mistake. They focus only on the mortgage payment. The mortgage payment is important, of course, but it’s only one piece of the puzzle. Before writing an offer, buyers should sit down and calculate the total monthly cost of the home. That means including: Mortgage payment Property taxes City utilities Home insurance Strata fees, if applicable Heating costs Potential maintenance expenses Because the difference between “technically approved” and “comfortably affordable” can be huge. Let’s use a simple example. Suppose you purchase a home for $650,000 with a reasonable down payment. At current interest rates, your mortgage payment might land somewhere around $3,100 per month. At first glance, that may seem manageable. But then we add: Property taxes: $350/month Utilities: $200/month Home insurance: $140/month Strata fees: $450/month Suddenly the true monthly housing cost is closer to $4,240 per month. That’s a very different conversation. And if you haven’t done those calculations ahead of time, you may find yourself house-rich and lifestyle-poor after possession day. I often tell clients this: your home should support your life, not consume it. You still want room for groceries, kids’ sports, travel, retirement savings, and the occasional dinner out where nobody has to do dishes afterward. Another benefit of getting pre-approved early is discovering issues before they become emergencies. Sometimes we uncover small credit issues, missing documents, or income challenges that can be fixed with a little planning and time. It’s much better to solve those things before you fall in love with a home than three days before financing conditions are due. And please remember — just because a lender says you qualify for a certain amount does not mean you have to spend that much. Some of the happiest homeowners I know bought below their maximum approval and left themselves breathing room financially. Funny enough, those are usually the people sleeping best at night when interest rates rise or life throws a curveball. Buying a home should feel exciting, not terrifying. So before you start measuring living rooms for sectional sofas or debating paint colours, take the time to get a proper pre-approval completed and run the real monthly numbers carefully.  Future-you will be very grateful.