Reverse Mortgage Questions, Answered

Every homeowner on title must be at least 55. If a spouse under 55 is on title, you'll need to wait or consider a refinance instead.

It must be your primary residence in Canada, generally with an appraised value of $250,000 or more. Urban and suburban Ontario homes qualify most easily; some rural or unusual properties may not.

Far less than a regular mortgage. Approval is driven by age, home value and location. Lenders do confirm you can keep paying property taxes and insurance.

Yes — in fact it's one of the most common uses. The reverse mortgage must first pay off any registered debt on the home; the rest is yours.

Typically 15%–55% of appraised value, rising with age. Use our calculator for a personalized range.

No. It's a loan, not income. It doesn't affect OAS or GIS either — that's confirmed by the Financial Consumer Agency of Canada.

Lump sum, scheduled monthly or quarterly advances, or a combination. Scheduled advances only accrue interest as they're received.

Higher than a conventional mortgage — generally in the 6.5%–8.5% range in 2026 depending on lender, product and term. We show you live lender rate sheets with APR before you decide anything.

A setup/closing fee of roughly $995–$1,795 depending on the lender (usually deducted from your advance), an appraisal around $350–$600, and independent legal advice fees.

No. You stay on title as the owner. The lender registers a mortgage, exactly as with a regular mortgage.

Not while you live there and keep property taxes, insurance and maintenance current. There are no payments to fall behind on.

Canada's providers include a no-negative-equity guarantee: provided you meet your obligations (taxes, insurance, upkeep), the amount due will not exceed your home's fair market value at repayment.

Lenders require you to review the contract with your own lawyer before funding. It's a consumer safeguard — it confirms you understand the terms and are signing freely.

When you sell, permanently move out (for example into long-term care), or when the last borrower passes away.

Typically about 180 days to repay — usually from the home's sale. No prepayment charge applies on death, and anything left after repayment belongs to your heirs.

Yes. Most products allow about 10% prepayment per year without penalty, and full repayment charges shrink over time. 'Open' products allow repayment anytime without penalty at a higher rate.

No. The debt is secured only by the home. With obligations met, the estate never owes more than the home's value — heirs either repay and keep the home, or sell it and keep the difference.