A reverse mortgage qualifies on your age and your home's equity. Nothing else.
Ontario home values have grown roughly 75-80% since 2015. Reverse mortgage lenders unlock a percentage of today's appraised value. The longer you wait, the more those qualifying tables tighten and the more the market resets.
A 10-minute call now locks in your number, your rate, and your options while the equity is at peak. No pressure, no obligation, no credit hit.
No. You stay on title. A reverse mortgage is a loan secured by your home, the same way a regular mortgage is. The lender does not own your home, never will, and cannot force you out as long as the home remains your primary residence and you keep up property tax and insurance.
The home is sold by your estate (or you, if you've moved out). The reverse mortgage and accrued interest are repaid from the sale. Anything left over goes to your estate or your heirs. Heirs also have the option to keep the home and pay out the loan from other funds. Most reverse mortgages give heirs 6-12 months to settle.
No. Every regulated Canadian reverse mortgage carries a No-Negative-Equity Guarantee. If the loan ever exceeds the home's fair market value at the time of sale, the lender absorbs the difference. You and your estate are protected.
Between about 16% and 55% of your home's value, depending mostly on age. Older borrowers qualify for a higher percentage. The calculator at the top of this page uses Canada's industry-standard qualifying ratios — the same ones the major reverse mortgage lenders use to issue real quotes. Final number depends on property type, location, and lender.
No to both. The funds are a loan, not income, so there's no tax. They don't show up on your tax return and they don't trigger OAS recovery (clawback) or affect GIS, the Age Amount, or any other income-tested benefit.
Rate: typically about 1-3% above prime, fixed for terms from 6 months to 5 years. Higher than a regular mortgage because there's no income qualification and no monthly payment requirement. Setup costs: appraisal ($300-$700), independent legal advice (covered by us), and a one-time setup/closing fee (about $1,500-$2,500 depending on lender). Every fee is disclosed in writing 2 business days before signing per FSRA rules. No surprises.
Yes, you can pay off the loan in full at any time. Some lenders charge a prepayment penalty if you pay it off in the first few years (similar to a regular mortgage); others waive it after a set period. You can also pay the interest (or any portion you'd like) any time, with no obligation. We compare prepayment terms across lenders before you choose.
Maybe. Sometimes downsizing is the right answer. But run the math: a $1M home selling, with realtor fees, land transfer tax, lawyer fees, moving costs, and a $700K replacement, can leave you with surprisingly little once everything settles. You also lose the home, the neighbourhood, and the equity growth on the original property going forward. We'll honestly tell you when downsizing makes more sense than borrowing.
The three main players are HomeEquity Bank (CHIP), Equitable Bank, and Bloom Finance. They all offer slightly different LTV ratios, rates, and fee structures. Lighthouse is independent — we shop all of them on your behalf and recommend the one that fits your situation, not the one that pays the highest commission.
