Mortgage Blog By Broker Mike Cara
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Reverse Mortgages in Peterborough: What Homeowners Need to Know
February 6, 2026 | Posted by: Mike Cara
For many homeowners in Peterborough, the home they have worked decades to build is also their largest financial asset. Yet retirement often brings new financial pressures—from rising living costs to healthcare expenses and home maintenance. One increasingly popular solution is the reverse mortgage, a financial tool designed to help homeowners aged 55 and over access the equity in their homes without selling or making monthly mortgage payments.
With more than 30 years of experience assisting homeowners across Peterborough and the Kawarthas, Mike Cara, Mortgage Broker, continues to help clients understand whether a reverse mortgage is the right strategy for their retirement planning.
What Is a Reverse Mortgage?
A reverse mortgage allows eligible Canadian homeowners to borrow against the value of their home—typically up to about 55% of the property’s current value—while continuing to live in the home. Unlike traditional mortgages, no regular payments are required. The loan is repaid only when the home is sold, the homeowner moves, or the estate is settled.
Reverse mortgages in Canada are commonly offered through established lenders such as Home Equity Bank (CHIP Reverse Mortgage) and Equitable Bank.
Why Interest Is Growing in Peterborough
Peterborough has a large and growing population of homeowners aged 55+, many of whom have accumulated significant home equity as property values have risen over the years. At the same time, many retirees prefer to remain in their homes rather than downsize or relocate. Reverse mortgages are increasingly being considered to maintain independence while accessing additional financial flexibility.
Key Advantages
Homeowners often explore reverse mortgages for several reasons:
- Remain in Your Home: Continue living where you are most comfortable without selling or downsizing.
- No Monthly Mortgage Payments: Cash flow is preserved because repayment is deferred.
- Tax-Free Funds: Proceeds are generally not considered taxable income and typically do not affect government benefits such as OAS or GIS.
- Flexible Use: Funds can be used for renovations, in-home care, travel, debt consolidation, or supporting family members.
- Protect Retirement Savings: Accessing home equity may reduce the need to withdraw investments during market downturns.
Important Considerations
While reverse mortgages can be highly beneficial, they are not suitable for every situation. Interest accrues over time, reducing the remaining home equity, and homeowners must continue to pay property taxes, insurance, and maintenance costs. For this reason, professional guidance and a comprehensive financial review are essential before making a decision.
Local Expertise You Can Trust
Mike Cara, one of Peterborough’s most experienced mortgage brokers, has spent more than three decades helping homeowners evaluate mortgage solutions tailored to their individual needs. His consultative approach ensures clients fully understand the benefits, risks, and alternatives before proceeding, enabling them to make confident, informed decisions.
Is It Time to Explore Your Options?
A reverse mortgage may be worth considering if you are age 55 or older, have substantial home equity, and would like to enhance your retirement cash flow while remaining in your home. Even if you are simply exploring future possibilities, a professional consultation can provide valuable clarity.
For personalized advice on reverse mortgages in Peterborough, contact Mike Cara, Mortgage Broker, and learn how your home equity could support your long-term financial goals.
