February may be the shortest month of the year, but it’s packed with history, surprises, and big ideas. From Super Bowl Sundays and groundhogs to Mardi Gras and leap years, February always gives us something to talk about. But here’s a fun fact you may not know: there was once—only once in over 2,000 years—a February 30th.
The One-and-Only February 30th
Between 1582 and 1752, much of the world transitioned from the Julian calendar to the Gregorian calendar we use today. Because countries made the switch at different times, calendars needed occasional adjustments—sometimes adding or subtracting days to realign dates.
In 1712, Sweden made its move and implemented a one-time-only February 30th to help smooth the transition. Imagine being born on a day that never happened again for the rest of your life!
Reverse Mortgages: A Modern Tool for Retirement Planning
Now let’s shift gears to a topic that’s becoming increasingly relevant for Canadians planning for retirement.
Picture this: it’s 1986. You’re an accountant in Vancouver, and you’re noticing a trend. Seniors are living longer, healthier, more independent lives—but many don’t have enough cash flow to comfortably cover day-to-day expenses.
So you create a solution: a financial product that allows homeowners to access their home equity without giving up ownership.
That product became the Canadian Home Income Plan (CHIP)—Canada’s version of the reverse mortgage. It started slowly, but over the following decade, it gained traction across the country.
Fast forward to 2026, and reverse mortgages have evolved into a valuable financial planning tool. In fact, usage has increased 40% in the past three years alone. Rising property values, inflation, longer life expectancy, and the fact that 71% of Canadians over 75 still own their homes have all contributed to this growth. Many retirees are now using home equity to maintain—or even improve—their standard of living.
The Basics of a Reverse Mortgage
A reverse mortgage is available exclusively to homeowners aged 55 and older. Eligible homeowners can typically access 15–55% of their home’s value, depending primarily on age and location.
Funds can be accessed in several flexible ways:
- As a line of credit
- As a lump sum
- As regular monthly payments
- Or a combination of lump sum and monthly payments
Homeowners must continue living in the property, maintain it, and keep property taxes and insurance up to date. Reverse mortgages are available on single-family homes and multi-unit properties (up to six units), and it’s possible to hold up to three reverse mortgages.
Key Benefits of a Reverse Mortgage
One of the biggest advantages is accessibility. Qualification does not depend on income or credit score—you don’t even need income at all. You remain the full owner of your home and continue building equity.
Additionally, the funds received are not considered taxable income and do not affect government benefits or pensions. When used thoughtfully (and with guidance from a financial planner), reverse mortgages can even play a role in tax planning.
What Can a Reverse Mortgage Be Used For?
The flexibility is one of the product’s biggest strengths. Common uses include:
- Home renovations or accessibility upgrades
- Helping family members (down payments, weddings, living inheritances)
- Purchasing another property
- Paying off higher-interest debt
- Funding lifestyle expenses, travel, or healthcare costs
Understanding the Costs
There are two main cost components:
- Interest
Reverse mortgage interest rates are typically 1–2% higher than standard mortgages, with options for fixed or variable rates. - Upfront Costs
These include an appraisal, independent legal advice, and a lender or setup fee. Expect total upfront costs of approximately $1,500–$3,000. In some cases, promotions or negotiated terms may reduce these expenses.
Working with a mortgage professional can help you shop around and minimize costs.
Exiting a Reverse Mortgage
You can repay a reverse mortgage much like a traditional one:
- Pay off the balance in full at the end of the term
- Make voluntary payments to reduce the balance
- Repay in full when the home is sold
In the event of death, the mortgage is repaid before the estate is distributed. Early repayment fees may apply depending on the lender and terms.
Regulation and Consumer Protection
Reverse mortgages in Canada are regulated by the Office of the Superintendent of Financial Institutions (OSFI). They are non-recourse loans, meaning you’ll never owe more than the value of your home. This is sometimes marketed as a “no negative equity guarantee,” but it’s actually a legal requirement.
Are Reverse Mortgages a Scam?
No—reverse mortgages are legitimate, regulated financial products. They’re endorsed by the Canadian Association of Retired Persons (CARP), whose members may qualify for fee rebates. The Ontario Teachers’ Pension Plan even invests in one of Canada’s largest reverse mortgage providers.
That said, scams do exist around the product. Avoid anyone asking you to sign over your home title or contractors offering to “handle the paperwork” in exchange for renovation funding. Always work with a licensed, experienced mortgage professional.
Alternatives to Consider
A reverse mortgage isn’t the only option. Alternatives include:
- A Home Equity Line of Credit (HELOC)
- Selling and downsizing
- Renting or moving into another type of residence
Each option comes with different costs and trade-offs, so comparing the total financial impact is key.
Canada’s Economic Outlook: Trade, Resources, and Opportunity
Beyond personal finance, Canada is navigating meaningful changes on the global economic stage. As trade dynamics shift, Canada is expanding relationships beyond the U.S. market.
A recent visit by Prime Minister Mark Carney to Beijing—the first since 2017—resulted in a new trade agreement that lowered tariffs on Chinese electric vehicles and Canadian canola seed. These developments signal a broader push toward trade diversification.
Where Canada Holds an Advantage
Canada’s strengths include:
- Abundant natural resources (energy, critical minerals, agriculture)
- Strong trade agreements like CETA and CPTPP
- A global reputation for political stability, rule of law, and low-carbon production
Key growth sectors include:
- Energy: LNG and oil exports to Asia via the Pacific Coast
- Agriculture: Canola, potash, and food products with rising global demand
- Metals and Minerals: Especially low-carbon and critical inputs
Over time, these advantages position Canada to reduce reliance on the U.S. market while maintaining economic resilience.
Looking Ahead
As Canada continues to diversify trade and stabilize inflation, consumer and business confidence is expected to improve. Combined with lower mortgage rates and more balanced housing prices, this could bring housing activity back to more normal levels in provinces like Ontario and British Columbia.
That wraps up February’s insights.
And a quick reminder: Pink Shirt Day is Wednesday, February 25, raising awareness about bullying in schools, workplaces, homes, and online.