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Access your equity like a HELOC

You probably know how a HELOC works. This is similar — draw funds as you need them, pay interest only on what you use. The difference? No income test to qualify, and you don't actually have to make monthly payments.

See what you qualify for Talk to us

How it works

If you've had a HELOC before, you already understand the concept: get approved for a credit limit, draw what you need, pay interest on the balance. Same thing here. It's a readvanceable mortgage backed by your home equity.

The difference is you don't have to make monthly payments. Interest adds to your balance and gets repaid when you sell. You can make payments if you want (and some people do, to keep the balance down), but nothing is required.

You also don't need employment income to qualify. Approval is based on your age and home equity. That makes it available to retirees who might not qualify for traditional credit products.

When you want to draw funds, you call or submit a request and the money shows up in 3-5 business days. Not instant, but not weeks either.

Two ways to access funds

Draw on demand

Call or submit a request, and money lands in your bank account within a few business days. Minimum $5,000 per draw. Good for bigger expenses — renovations, a trip, helping family with a down payment.

  • • Request funds when you need them
  • • 3-5 business days to your bank account
  • • $5,000 minimum per draw
  • • No fees for draws

Scheduled monthly advances

Set up automatic monthly deposits into your account. Works like a second pension cheque. Good for covering regular expenses or filling the gap between what you have and what you need.

  • • Monthly (or quarterly) automatic deposits
  • • Start from $500/month
  • • Change or stop anytime
  • • Interest only accumulates as you draw

The prepaid Mastercard option

One lender (Bloom) offers a prepaid Mastercard that draws directly from your home equity. Use it like any credit card — groceries, gas, online shopping — but there's no monthly bill. Charges add to your mortgage balance instead.

You set a monthly reload limit (up to $2,000/month), and the card automatically tops up each month. Swipe for a coffee, the $5 gets charged against your equity. Same interest rate as the rest of your balance.

Why people like it

  • ✓ Use anywhere Mastercard is accepted
  • ✓ No monthly bill to pay
  • ✓ Good for regular monthly expenses
  • ✓ Interest is 8-9%, not credit card 20%+

The catch

  • ! It doesn't feel like spending real money
  • ! Easy to overspend without realizing
  • ! $2,000/month becomes $140,000 of debt in 5 years
  • ! Only available with one lender's product

The card works well for disciplined spenders who need to supplement their monthly income. It's risky for anyone who might treat it as "free money." We'll be honest with you about which camp you fall into.

How it works in practice

1. Get approved for a total amount

Based on your age, home value, and location, you're approved for a maximum — usually 20-55% of your home's value. The older you are, the more you can access.

2. Decide how much to take now

You don't have to take the full amount. Take $50,000 now for a renovation, leave $100,000 available for later. Or set up $1,500/month in scheduled advances. Or both.

3. Interest accrues on your balance

Whatever you've actually borrowed starts accumulating interest. The unused portion costs you nothing. Interest gets added to your balance each month.

4. Draw more when you need it

Up to your approved limit, you can request additional funds anytime. No reapplication, no fees. Call or submit a request and the money shows up in a few days.

How people actually use this

Draw on demand

George and Pauline (68 and 66, Kelowna, $680,000 home) got approved for $170,000.

They took $45,000 right away to replace the roof and update the main bathroom. The other $125,000 sits there untouched — no interest, no cost — as an emergency fund if they need it.

Example uses realistic numbers but isn't an actual client.

Monthly advances

Margaret (72, Calgary, $520,000 home) qualified for $156,000.

Her pension covers most bills, but not much else. She set up $1,200/month in automatic advances — an extra $14,400 a year that lets her travel, help with grandkid expenses, and not stress about money.

Example uses realistic numbers but isn't an actual client.

Prepaid card

Frank (75, Vancouver, $1.1M home) qualified for $385,000.

He took $80,000 to pay off credit card debt and set up the prepaid Mastercard at $1,500/month for groceries and daily expenses. No more monthly credit card bill, and he's paying 8% instead of 21% on day-to-day spending.

Example uses realistic numbers but isn't an actual client.

Combination

Helen (69, Victoria, $780,000 home) qualified for $210,000.

She took $30,000 upfront for a trip to visit her kids in Australia. She kept $100,000 available for future draws. And she set up $800/month scheduled advances to supplement her pension. Three different needs, one approval.

Example uses realistic numbers but isn't an actual client.

You can mix and match

Once you're approved for a total amount, you structure it however you want. Take some now, schedule monthly advances, and keep the rest available. Change the setup later if your needs change. It's your money — we just help you figure out the most sensible way to access it.

What people use it for

Emergency reserve

Get approved, take nothing or very little. The credit sits there waiting. If something expensive happens — furnace dies, car needs replacing, health issue — the money is available in a few days.

Monthly income boost

Set up scheduled advances to fill the gap between your pension and what you actually need. It's like giving yourself a raise, funded by equity you'd otherwise leave to your estate.

Renovations, in stages

Draw funds as contractor invoices come in. Do the bathroom this year, the kitchen next year. You're not carrying interest on money you haven't spent yet.

Bridge to other money

Use it while waiting for an investment to mature, an estate to settle, or that pension to kick in. Pay it back when the other money arrives.

Helping family

Draw $50,000 to help a kid with a down payment. Better to see them benefit now than leave a bigger estate later. You can still stay in your home.

Travel, spread out

Draw for a trip this year, another trip next year. Not all retirees want one big vacation — some want several smaller ones over time.

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The parts people ask about

The balance grows if you don't make payments

Interest compounds monthly. If you never make a payment, your balance grows over time. On $100,000 at 8.5%, you'd owe about $150,000 after five years. That's equity your estate won't get. Whether that matters depends on your situation — some people would rather have the money now than leave it to their kids later.

There's a few days wait for draws

When you request funds, it takes 3-5 business days to hit your account. Fine for most situations, but if you need money today for a true emergency, plan accordingly.

Prepaid card can encourage overspending

There's something about not getting a bill that makes spending feel painless. If you're someone who runs up credit card debt, the prepaid card option might make that worse, not better. Be honest with yourself about your spending habits.

Is this right for you?

This probably works if:

  • ✓ You want access to equity without monthly payments
  • ✓ You don't need all the money at once
  • ✓ You want an emergency fund available without requalifying
  • ✓ You're comfortable with interest adding to your balance
  • ✓ You plan to stay in your home for a while

This probably doesn't work if:

  • ✗ You need a one-time lump sum (consider a regular reverse mortgage)
  • ✗ You struggle with credit card discipline
  • ✗ Leaving maximum equity to your estate is important
  • ✗ You're planning to sell your home soon

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

All three Canadian reverse mortgage lenders offer readvanceable options. We'll compare them to find the best fit for how you plan to use the money — rates, terms, and whether the prepaid Mastercard makes sense for your spending habits.

We're brokers. We don't work for any lender. If a lump sum or monthly income option makes more sense than flexible access, we'll tell you.

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Compare all three options

This isn't the only way to access home equity. Here's how the three main approaches compare:

Option Best for How you get money Monthly payments
Lump sum Major one-time expenses One big cheque at closing Optional
Monthly income Supplementing your pension Regular monthly deposits None required
Flexible access (this page) Ongoing or unpredictable needs Draw when you need it None required
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Common questions

How is this different from a regular HELOC?

Both are readvanceable mortgages — get approved for a limit, draw what you need, pay interest on what you use. The difference is payment: a bank HELOC requires monthly payments, this doesn't. You also don't need to qualify based on income, which matters for retirees.

How fast can I get money if I need it?

For draws after you're set up: typically 3-5 business days after you request it. Fine for most situations. If you have a true same-day emergency, keep some cash accessible elsewhere.

Can I switch between the different access methods?

Usually yes. Start with draws on demand, then add scheduled monthly advances later. Or vice versa. The prepaid Mastercard option is only available with one lender (Bloom), so you'd need to be set up with them to use it.

What if I never use the available credit?

No cost. You only pay interest on money you actually borrow. If you're approved for $200,000 and never touch it, you owe nothing. Some people just want the security of knowing it's there if they need it.

See all questions about reverse mortgages →

Let's figure out what makes sense

We'll tell you pretty quickly if flexible access is right for your situation — or if a lump sum or monthly income option fits better.

See what you'd qualify for Call us: 1-888-884-4445