Your parents own a home worth a lot of money. Their monthly life is tight. The roof needs work, the trips stopped, and every time money comes up, the conversation goes sideways. If that sounds familiar, you are not alone, and there is more you can do than you might think.
First, understand what is really going on
Being house rich and cash poor usually means most of your parents' wealth is in the home, while their income is pensions and savings that have not kept pace with costs. The equity is real, but it does not pay the bills unless they sell, borrow against it, or find another way to free some of it up.
The options, side by side
| Option | Good for | Watch out for |
|---|---|---|
| Downsize | A home that no longer fits, or a planned move anyway | Selling and moving costs, property transfer tax on the next home, and leaving a community |
| Home equity line of credit | Parents with solid income and good credit | Monthly payments, and qualifying in retirement |
| Reverse mortgage | Staying put with no required monthly payments on most products | Typically higher rates, compounding interest, less equity left later |
| BC property tax deferment | When the tax bill is the main pressure | From 2026, compound interest at prime plus 2% |
| Rent a suite or room | Homes and zoning that allow it | Being a landlord, and tenancy rules |
| Family help | Siblings who can afford it and agree | Strain on the kids and on fairness between them |
General comparison only. Your parents' options depend on their age, home, income and goals.
Where a reverse mortgage fits
A reverse mortgage lets homeowners 55 and over borrow against the home without required monthly payments on most products. They keep title and keep living there. Interest builds, so less equity is left later, and rates are typically higher than a regular mortgage. It tends to fit parents who want to stay, are struggling with monthly cash flow, and will be in the home for the long term.
One thing to check early: if one parent is not on title or not on the loan, a reverse mortgage can come due when the other dies or moves out, even if that parent still lives there.
Your role, and its limits
This is your parents' home and their decision. You can gather the facts, help them compare, sit in on calls, and make sure they get independent legal advice. You cannot sign for them unless you hold a valid power of attorney, and even then it has to be in their interest. The kindest thing most adult kids can do is help their parents see every option clearly, then step back.
A simple way to start
- Get your siblings on the same page first, quietly.
- Pick one calm moment and one topic. Not a holiday dinner.
- Start with questions: what do they want their life and home to look like?
- Put the options on paper, including doing nothing.
- Offer to sit in on a call with a broker, a lawyer or an accountant.
Questions people ask
Can I apply for a reverse mortgage for my parents?
No. Your parents are the borrowers and must make the decision themselves, with independent legal advice. With their permission you can be part of the conversations and calls.
What if my parents refuse to talk about it?
Do not push. Start with what they want, not with the money. Our guide has a step-by-step approach for the first conversation.
Will a reverse mortgage use up our inheritance?
It reduces the equity left later, because interest builds over time. Some families decide that helping now, while their parents are here to enjoy it, is worth it. Others choose a cheaper option.
About the author
Matt Blake is a licensed mortgage broker in British Columbia with BRX Mortgage Inc. He helps families whose parents are house rich and cash poor compare every option, from HELOCs and downsizing to reverse mortgages, with the parents in charge of every decision. He will tell you straight when a reverse mortgage is the wrong move.
Licence MB600487 · BRX Mortgage Inc., brokerage licence X301291 · Last reviewed October 2026
Get everyone on the same page
The free Living Inheritance Guide covers every option side by side, the paperwork, and a family meeting plan. Then book a family call with your parents on the line, if and when you are ready.