Reverse Mortgage vs Refinance in Saskatoon, Regina

January 14, 2026 | Posted by: Lisa Helfrick - Trusted Saskatoon, Regina and Saskatchewan Mortgage Broker

Retiring Soon? Reverse Mortgage vs Refinance in Saskatoon and Regina

For many homeowners in Saskatoon and Regina, the years leading up to retirement bring a mix of pride and uncertainty. You may have spent decades paying down your mortgage, raising a family, and building equity without really thinking about how that equity fits into retirement planning.

Then renewal time arrives.

Suddenly, questions start piling up. Do you keep making mortgage payments into retirement? Do you refinance to free up cash? Or do you consider a reverse mortgage so you can stay in your home without monthly payments?

There is no one-size-fits-all answer. But there is a smart way to think through the decision, and it starts with understanding how each option actually works in real life, not just on paper.

This guide is written specifically for homeowners 55 and older in Saskatchewan who are nearing retirement or already retired and facing a mortgage renewal or cash flow decision. If you want a second set of eyes on your numbers, our team is here to help as your Saskatoon mortgage broker professionals.

Did You Know

Many homeowners approaching retirement assume their only real option is to pay off their mortgage as fast as possible. In reality, a growing number of Canadians are choosing to use their home equity as part of their retirement income strategy, especially as living longer becomes the norm and fixed incomes face rising costs.

In Saskatchewan, it is common for long-time homeowners to have significant equity but limited liquid savings. That gap is often where refinancing or reverse mortgages enter the conversation.

Why This Decision Feels Bigger at 55+

In your working years, mortgage decisions are usually about growth. Bigger homes, better rates, faster payoff.

After 55, the focus shifts. Cash flow matters more than speed. Stability matters more than leverage. And peace of mind often matters more than interest rates.

At this stage, most homeowners are asking questions like:

• How do I reduce monthly expenses?
• How long do I plan to stay in this home?
• What happens if my income drops?
• How do I avoid becoming house-rich and cash-poor?

Both refinancing and reverse mortgages can solve problems. They just solve different problems.

Option 1: Refinancing Your Mortgage Before or During Retirement

A refinance replaces your current mortgage with a new one, often with a new term, rate, and payment structure. Many homeowners in Saskatoon and Regina refinance at renewal to access equity or reset payments. If you are exploring this route, start here: Saskatoon mortgage refinancing or Regina mortgage refinancing.

Why Some 55+ Homeowners Refinance

Refinancing can make sense if:

• You still have stable income, pension income, or reliable investment income
• You want to consolidate higher-interest debt into one payment
• You need a lump sum for renovations, helping family, or a major expense
• You are comfortable continuing monthly mortgage payments

A refinance keeps your loan structure familiar. You borrow, you pay it back, and over time your balance declines.

The Trade-Offs to Watch Closely

Refinancing does mean monthly payments continue. Qualification still applies, including income verification. And payments may stretch into your 70s or 80s if amortization is reset.

For some retirees, this feels fine. For others, it becomes a growing source of stress, especially when income becomes fixed.

Option 2: Reverse Mortgages Explained for Saskatchewan Homeowners

A reverse mortgage works very differently. Instead of making payments to the lender, the lender advances money to you, secured against your home.

You keep ownership of your home. You do not make monthly mortgage payments. The loan is repaid when the home is sold or the last homeowner leaves the property.

In Canada, reverse mortgages are available to homeowners 55 and older, and the amount you can access depends on factors like age, property value, and location. If you want the basics and next steps, see our page here: CHIP reverse mortgage in Saskatoon and Regina.

Why Reverse Mortgages Appeal to Retirees

For many Saskatchewan homeowners, reverse mortgages are appealing because they:

• Can remove monthly mortgage payments
• Do not rely on traditional income qualification in the same way as a refinance
• Provide access to cash (typically received tax-free)
• May allow you to stay in your home longer

This option is often used to pay off an existing mortgage at renewal, supplement retirement income, cover unexpected expenses without selling, and reduce financial stress in later years.

Common Misunderstandings

A reverse mortgage does not mean you lose your home, the lender takes your title, or your children inherit debt beyond the home’s value.

Most Canadian reverse mortgages include a protection that you will not owe more than the home’s value when sold, as long as you keep up with required obligations like property taxes, insurance, and maintenance.

Reverse Mortgage vs Refinance: A Side-by-Side Reality Check

This is where the decision becomes clearer.

Refinancing is often better if:

• You want the lowest long-term borrowing cost
• You are comfortable with monthly payments
• You plan to pay down debt steadily
• You expect stable income for many years

A reverse mortgage may be better if:

• Cash flow matters more than rate
• You want to reduce or eliminate mortgage payments
• Income qualification is a concern
• You plan to stay in your home long term

Neither option is “better” in general. One is usually better for you, depending on what stage of retirement you are entering.

A Realistic Local Scenario

Consider a couple in Regina, both 62, with a remaining mortgage balance at renewal. They have strong equity but limited pension income and want to travel occasionally without worrying about monthly bills.

Refinancing could lower their rate, but payments would continue. A reverse mortgage could pay out the existing mortgage and improve monthly cash flow. In this case, peace of mind and lifestyle flexibility may outweigh the cost difference.

This is the type of conversation we regularly have with homeowners, looking at numbers, lifestyle goals, and long-term plans, not just rates. If you are nearing renewal, our Saskatoon and Regina mortgage renewals page is a great starting point.

How Renewal Timing Changes the Conversation

Mortgage renewal is often the best moment to explore both options. At renewal, it is often easier to adjust strategy, compare outcomes, and move forward with a plan that fits retirement.

For homeowners in Saskatoon and Regina renewing soon, this is a natural checkpoint to ask whether continuing payments still makes sense, or whether it is time to use equity differently.

Stats That Help Put This Into Context

Here are a few Canada-wide data points that help explain why more 55+ homeowners are discussing retirement cash flow and mortgage debt:

• Mortgage debt among 55 to 64 households has increased. Statistics Canada reported that in Q1 2024, households with a main income earner aged 55 to 64 held $315.7 billion in mortgage liabilities, averaging $109,337 per household, up from $244.2 billion and $83,551 in Q1 2020.
• Mortgage liabilities also rose for Canadians aged 65+. Over the same period, mortgage liabilities for the 65+ group increased from $97.2 billion (average $21,195 per household) to $141.2 billion (average $27,441).
• Canada’s overall mortgage debt remains high. CMHC reported residential mortgage debt reached about $2.3 trillion in August 2025.

The takeaway is simple, carrying a mortgage into retirement is more common than it used to be. That is why planning early, especially at renewal, can make a big difference in how retirement feels month to month.

Top 10 FAQs for Saskatoon and Regina Homeowners 55+

1) Can I use a reverse mortgage to pay off my existing mortgage?
Yes. Many homeowners use a reverse mortgage to pay out an existing mortgage at renewal so they can reduce or eliminate monthly payments.

2) Will I still own my home with a reverse mortgage?
Yes. You remain the registered owner and keep control of the property.

3) Is refinancing cheaper than a reverse mortgage?
Refinancing often has a lower interest cost over time, but it requires ongoing payments and qualification. The better fit depends on whether cash flow or total cost is the bigger priority.

4) Do reverse mortgages affect government benefits?
In many cases, funds are received tax-free and do not reduce benefits like OAS. Still, every retirement setup is different, so it is smart to review your full picture.

5) Can I refinance after I retire?
Yes, it can be possible. Qualification depends on income sources like pensions, investments, and other reliable income streams.

6) What happens if I sell my home later?
The loan is repaid from the sale proceeds. Any remaining equity goes to you or your estate.

7) Are reverse mortgages available in Saskatoon and Regina?
Yes. Eligible homes in both cities can qualify, subject to lender criteria, appraisal, and property type.

8) Can I make payments on a reverse mortgage if I want to?
Some options allow voluntary payments, but monthly payments are typically not required.

9) What if home values decline?
Most Canadian reverse mortgages include protections so you do not owe more than the home’s value at sale, assuming obligations like taxes, insurance, and maintenance are kept up.

10) Is this decision reversible later?
Yes. A refinance or reverse mortgage can be paid out if you sell, downsize, or change plans.

How a Mortgage Broker Helps You Decide

This decision is not about pushing a product. It is about matching your mortgage strategy to your retirement goals.

A broker can help you compare refinance and reverse mortgage outcomes, stress-test monthly cash flow, explain the trade-offs in plain language, and time everything cleanly around renewal.

If you are weighing options, start with a conversation. Many people feel immediate relief once the numbers are laid out clearly and the choices stop feeling foggy.

Final Thoughts for Homeowners Nearing Retirement

Your home is more than an asset. It is where your life happened.

The right decision is the one that lets you enjoy retirement with less worry and more flexibility, whether that means continuing payments or letting your equity support your lifestyle.

If you are approaching renewal and want a clear plan, explore mortgage renewals in Saskatoon and Regina, or compare refinance options in Saskatoon and Regina. If a reverse mortgage is on your mind, our CHIP reverse mortgage page is a helpful next step.

Back to Main Blog Page