Paying for senior care in Canada
Care is one of the biggest expenses a family faces, and it usually gets paid from a mix of sources, not one. This is how to fund it in the order that protects your money, starting with what costs nothing to claim.
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Start with the numbers
See the yearly cost, the gap after income, and a plan to fund it.
The order to pay for care
- 1
Government benefits & subsidies
Always start here, these cost nothing to claim and are the most-missed money. Federal pensions (CPP, OAS, and the GIS for lower incomes), provincial home-care funding, and care tax credits can all cut the bill.
- 2
Retirement income & savings
Pensions, RRIFs, and savings usually cover the month-to-month shortfall. Drawing them down in a tax-smart order, and knowing how long they will last, is the heart of the plan.
- 3
Insurance
The right coverage protects the plan: home insurance sized to a home that is changing hands, final-expense insurance so a funeral does not eat into care savings, and travel medical insurance for anyone 55+ heading out of province.
- 4
Home equity
If staying home matters and there is equity in the house, a HELOC, a reverse mortgage (55+), or downsizing can fund years of care. They work very differently, so compare them before choosing.
- 5
Downsizing or selling
Selling the family home can free up the most money at once and end the upkeep, though it is also the biggest emotional step. It often pairs with a move to retirement or assisted living.
- 6
Family contribution
Many families pool a monthly amount to close the gap. Agreeing who contributes what, in writing, keeps things fair and prevents strain down the road.
Freeing up home equity
If your parent owns their home and wants to stay, their equity can fund years of care. Here are the main routes, each with its own trade-offs. We can help you compare them.
Weighing how to use your home equity
A HELOC, a reverse mortgage, and downsizing each free up money in very different ways, with different costs and risks. We can help you compare them against your family's situation before you commit.
We are building partnerships with Canadian lenders and may be compensated for referrals. This is general information, not financial advice. Learn more.
Considering a reverse mortgage?
A reverse mortgage lets a homeowner 55+ access part of their home equity as tax-free cash, with no monthly payments, while staying in the home. It is one option among several, and not right for everyone. We can walk you through the trade-offs first.
We are building partnerships with Canadian reverse-mortgage providers and may be compensated for referrals. This is general information, not financial advice. Learn more.