Everything people actually ask us about reverse mortgages in Ontario. If your question isn't here, book a free 15-minute call and we'll answer it.
All registered owners on title must be 55 or older. The home must be your primary residence (you live there at least 6 months per year). Detached homes, semi-detached, townhouses, and most condos qualify. Most rural and seasonal properties do not.
Between 15% and 55% of your home's appraised value, depending primarily on your age. Older borrowers qualify for more because the expected loan term is shorter. A 55-year-old typically qualifies for around 18% of home value; a 75-year-old might qualify for 50%.
No. You retain full title and ownership. The lender registers a charge on the property (similar to a regular mortgage) but cannot force a sale as long as you live in the home, pay property taxes, maintain insurance, and keep the home in reasonable condition.
No. Both Canadian reverse mortgage lenders include a 'no negative equity guarantee.' If your home is sold and the loan balance exceeds the sale price, you and your heirs owe nothing more. The lender absorbs the difference.
Typical setup costs range from $2,500 to $3,500: appraisal ($400–$600), independent legal advice ($400–$700), lender administration fee ($1,500–$1,995), and title/registration ($300–$500). All paid from the loan proceeds — nothing out of pocket.
Reverse mortgage rates are higher than regular mortgages — typically 1.5%–3% above prime. As of late 2025, rates ranged from approximately 7%–9% depending on the lender, term length, and product. Fixed and variable terms available.
No. Reverse mortgage funds are NOT considered income. They don't affect Old Age Security, the Guaranteed Income Supplement, CPP, or any private pension. They are also tax-free.
No. Because the funds are technically a loan against your equity (not income), they are tax-free. You don't report them on your tax return.
You can choose: a single lump sum, scheduled monthly or quarterly advances, a line of credit (with Equitable Bank's Flex product), or a combination of these.
Yes. When you and your spouse pass away, your estate has 6–12 months to either sell the home (loan repaid from proceeds, remainder goes to heirs) or pay off the loan balance from other funds and keep the home. Many families plan for one or both of these in advance.
You can sell at any time. The reverse mortgage is repaid from the sale proceeds, and any remaining equity is yours. Prepayment charges may apply if you sell within the first 5 years — these vary by lender and term.
If you move out permanently (typically defined as more than 12 months out of the home), the loan becomes due. Most families sell the home at that point. If only one spouse moves to care and the other remains in the home, the loan continues normally.
Yes, at any time. Prepayment charges may apply during the first 5 years. After 5 years (or per your contract terms), you can typically pay it off in full with no penalty.
Yes. Many borrowers make voluntary interest-only payments to prevent the balance from growing. There's no requirement, but the option is available.
Two: HomeEquity Bank (which markets the CHIP Reverse Mortgage) and Equitable Bank (which offers the Equitable Bank Reverse Mortgage and the Flex product). Both are federally regulated Canadian banks.
Yes. The reverse mortgage is secured against your home, just like a regular mortgage. The lender registers a charge on title.
Yes — and both spouses must be on title and must each be 55 or older. This protects the surviving spouse if one passes, allowing the survivor to remain in the home.
The younger spouse must wait until they turn 55, OR be removed from title (which has its own legal and tax consequences and is generally not recommended). We can help evaluate the options.
Yes, but it's mostly a formality. Bad credit doesn't disqualify you. The lender mainly wants to confirm there are no unpaid property taxes, judgments, or other liens that would need to be cleared.
Typically 4–6 weeks from application to receiving funds. Appraisal scheduling and legal review take the most time.
No. Reverse mortgages are only available on your primary residence — the home you live in for at least 6 months per year.
A HELOC requires monthly interest payments and qualification based on income. A reverse mortgage requires NO monthly payments and qualification is based on age and home value. Reverse mortgages have higher interest rates but no payment pressure.
Yes — a HELOC if you can comfortably make payments, downsizing if you're open to moving, a sale-leaseback arrangement, or family loans. The right answer depends on your priorities. We'll discuss alternatives during your consultation.
If property taxes go unpaid for an extended period, the lender can require repayment of the reverse mortgage. Most lenders work with borrowers to find solutions before this happens.
No. The estate pays the loan balance (from home sale or other funds) but the original funds were not income. There's no tax owing on the reverse mortgage itself.