55+
Age of titleholders
Lenders generally require homeowner applicants to be at least 55 and consider the ages of all people registered on title.
Options for Ontario homeowners 55+
Reverse Mortgages in Ontario
Explore access to home equity while continuing to own and live in your home. Regular mortgage payments are generally not required while the agreement remains in good standing, but interest and fees increase the balance over time.
Stay in your homeUnderstand future equityCompare lender terms
The essentials
Use home equity without selling your home.
A reverse mortgage is a loan secured by your principal residence, designed for eligible older homeowners.
Eligible homeowners may receive proceeds as a lump sum, scheduled payments or a combination, depending on the lender. The loan proceeds are generally not taxable income, and the Financial Consumer Agency of Canada says they do not affect Old Age Security or Guaranteed Income Supplement benefits.
Interest is added to the balance unless paid; the amount owing can grow and the remaining equity can shrink. You retain ownership, subject to the loan agreement and property obligations.
Ownership continues
You remain responsible for meeting the lender’s property requirements, including maintenance and other obligations stated in the agreement.
Plan beyond today
Consider comfort now and equity later.
The right comparison should reflect your plans to remain at home, future borrowing needs, accumulated interest and the equity you hope to preserve for yourself or your estate.
Eligibility factors
Who may qualify in Ontario?
⌂
Your primary residence
Property value, condition, type and location affect eligibility and the amount a lender may make available.
$
Existing secured debt
A mortgage or HELOC may need to be paid from the proceeds, which reduces the net cash remaining for you.
About the 55% figure
The federal consumer agency describes reverse mortgage borrowing as usually up to 55% of appraised value before subtracting existing secured balances. The actual amount varies by age, property, location and lender. Ask for a personal lender illustration.
Long term clarity
Costs, obligations and repayment.
Compare interest rates and compounding, appraisal and setup fees, legal and closing costs, and early repayment charges. Consider independent legal and financial advice before deciding.
| Topic | What generally happens | What to ask |
|---|---|---|
| Interest | Added to the balance unless paid | How often does it compound, and can I make voluntary payments? |
| Property obligations | You continue to own and maintain the home | Which maintenance, insurance and property requirements apply? |
| Existing mortgage or HELOC | May need to be repaid and closed | What will my net proceeds be after secured debts and fees? |
| Repayment | Generally due after sale, move out, last borrower’s death or default | What are the exact triggers, estate timelines and early repayment charges? |
A thoughtful process
Compare today’s needs with tomorrow’s equity.
Clarify your goals
Discuss your cash flow needs, how long you expect to remain at home and your estate priorities.
Review an illustration
Compare lender terms, net proceeds, accumulated interest and remaining equity scenarios.
Get independent advice
Review the agreement, legal obligations and alternatives before making a final decision.
No sale required
You continue owning and living in the home while meeting the agreement.
Balance grows
Interest and fees can increase the amount owing and reduce remaining equity.
Estate impact
The balance is normally repaid from the home or estate when it becomes due.
Reverse mortgage FAQs
Clear answers for a long term decision.
Ask for the lender’s actual illustration and precise contractual obligations.
Do I have to be 55 to get a reverse mortgage in Ontario?
Applicants generally need to be at least 55. The lender considers the ages of other people on title and its product requirements. Do not assume that one qualifying owner makes every joint application eligible.
Do I still own my home?
Yes. You remain the owner, provided you follow the agreement. Ownership also means continuing to meet property obligations such as maintenance and other requirements stated by the lender.
Are there monthly mortgage payments?
Regular payments are generally not required while the loan remains in good standing. Interest continues to accrue and increases the balance. Voluntary payments may be possible, but limits and early repayment fees depend on the contract.
How much can I borrow?
It varies with your age, the ages of others on title, property value and type, location, lender and existing mortgages. FCAC says reverse mortgages usually permit up to 55% of the home’s appraised value; that is a general ceiling, not a personal offer.
Will a reverse mortgage affect my pension benefits or taxes?
Loan proceeds are generally tax free and FCAC says they do not affect OAS or GIS benefits. Your other financial circumstances may have separate tax or benefit implications; consult an appropriate advisor for your situation.
When must the reverse mortgage be repaid?
Usually when the home is sold, the homeowner moves out, the last borrower dies or the loan is in default. The lender’s agreement sets the timing, including estate repayment deadlines.
What happens to my estate and inheritance?
The loan and accumulated interest are repaid from the home or estate when due. Because the balance may grow, less equity may remain for beneficiaries. Request an illustration using more than one future home value and interest rate scenario.
What are the main costs and risks?
Rates are generally higher than a traditional mortgage or HELOC. Interest compounds, fees may apply and early repayment can trigger charges. The growing balance may limit later borrowing or reduce the equity available if you sell.
Can I keep my existing mortgage or HELOC?
A reverse mortgage lender may require those secured debts to be paid off and closed. Proceeds may be used for that purpose, reducing the cash left to you. Ask for a net proceeds estimate.
Is a reverse mortgage right for me?
It depends on your cash needs, plans to remain in the home, costs, other financing choices and estate goals. Compare offers and discuss the agreement with independent legal and financial professionals before deciding.
Related solutions