Take the first step toward a worry-free retirement
Retirement should be everything you’ve dreamed of—and more. How do you plan to enjoy it?
Let your home equity support what matters most to you.
Who Qualifies
Minimum age: 55+
Must have significant equity in the home
Home located in Canada, used as primary residence
Both spouses must apply if jointly owned
How It Works
Simple Steps to Follow
01
Apply through the mortgage form
02
Home is appraised to confirm value
03
Lender calculates eligibility (age + home value + location)
04
Funds are advanced tax-free
05
Repayment happens when you sell, move, or via your estate
Pros & Cons
Pros:
- Stay in your home
- Tax-free cash
- No monthly payments
- Flexibility in how funds are received
Cons:
- Interest accrues over time
- Reduces equity left in estate
- Setup fees (legal, appraisal, admin)
Case Study
John & Mary, both age 70, own a $800,000 home in Toronto. With a reverse mortgage, they accessed $300,000 tax-free to cover living costs and help their grandchildren, while staying in their home. They remain full owners of their home, and repayment will happen when they sell or from their estate.
Reverse Mortgage FAQs in Ontario
We know reverse mortgages are a big decision, and you likely have questions. Here are the answers to the most common ones we hear from Ontario homeowners.
A reverse mortgage allows homeowners (typically age 55+) to convert a portion of their home equity into cash without needing to make monthly principal repayments. Unlike a traditional mortgage, the loan is repaid when the home is sold or the borrower permanently moves out, dies, or refinances.
Eligibility generally requires you to be a minimum age (for example, 55 or older), own your home (or a large portion of it), live in the home as your primary residence, and meet certain credit and property value criteria. (Eligibility criteria may vary by lender.)
The amount you can get depends on your age, the appraised value of your home, current interest rates, and the lender’s maximum percentage of your home’s value. In some cases, you may access up to ~55% (depending on conditions), but actual amounts will vary.
Costs can include origination fees, appraisal fees, legal fees, and interest charges (which accrue over time). Unlike a traditional mortgage, interest is often compounded and added to the loan balance. It’s important to understand all fees and how interest accrual works.
No — you retain ownership of your home, and you can continue living there as long as you meet the terms (e.g. pay property taxes, maintain the home, insurance). The loan is typically repaid when the home is sold or when you move out permanently.
Usually, the home is sold, and the proceeds repay the loan (principal + accumulated interest + fees). Any remaining equity (above what’s owed) goes to the estate or heirs. In some cases, heirs may choose to refinance or repay to keep the home.
Yes, most mortgage plans allow voluntary interest payments to reduce accumulating interest, or partial repayments. Others may allow early or full repayment (subject to terms). Always check the contract and whether there are Penalties.
Risks include high accrual of interest over time (which reduces equity), fees, the possibility the loan grows faster than predicted, and that heirs may receive less from the estate. Also, if property taxes, insurance, or home maintenance are neglected, you could default.
