Reverse Mortgage in Ontario
Home Equity Loans for Seniors
Unlock financial freedom by leverging your home equity without making monthly payments.
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What Is a Reverse Mortgage?
A reverse mortgage in Ontario is a specialized financial instrument designed for homeowners aged 55 and over, allowing them to access a portion of their home equity in a tax-free manner. This type of loan is different from traditional home equity loans in that it does not require monthly mortgage repayments, making it a feasible option for seniors looking to supplement their income, cover medical expenses, or fund home repairs without the burden of additional monthly expenses.
How a Reverse Mortgage in Ontario Can Help Seniors
You can use your tax-free proceeds any way you like.
Manage Debt After Retirement
Stop Working and Retire Comfortably
Maintain Your Standard of Living
Take Retirement to the Next Level
How RetireBetter Got Michael
More Equity From His Home
Recent Client Examples
Jason & Sarah (Age 69 & 68)
Property Value: $2.3M
Approved For: $815k
Goal: Travel and home renovations.
Michelle & Tom (Age 65 & 67)
Property Value: $750k
Approved For: $241k
Goal: Needed more money for expenses. Turned down for home equity loan.
Janet (Age 71)
Property Value: $650k
Approved For: $216k
Goal: Give $100k to each of her daughters.
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How Much Can I Get From a Reverse Mortgage in Ontario?
The amount available through a reverse mortgage in Ontario primarily depends on your age and the equity in your home. As a general rule, older homeowners can borrow more, since lenders assume the loan period will be shorter. The equity, calculated as the current market value of your home minus any outstanding mortgage, also plays a vital role. Typically, having at least 50% equity is necessary to qualify for a reverse mortgage in Ontario.
Additionally, the interest rate and loan costs are significant factors influencing the borrowing amount. Lower interest rates usually increase the potential loan amount. Homeowners in Ontario have the flexibility to choose how they receive the funds from a reverse mortgage - either as a line of credit, in monthly payouts, or as a lump sum. This choice impacts both the amount accessible and its utilization over time, making it an important consideration in financial planning for retirement.
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Reverse Mortgage Calculator Ontario
Find out how much you can potentially access from your home equity
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Reverse Mortgage Interest Rates
Get better rates and fees using RetireBetter for your reverse mortgage. Available across Canada!
Lender
Mortgage Terms
Rate
Setup Fee
1 Year Fixed
8.24%
$995.00
1 Year Fixed
8.49%
$1,795.00
2 Year Fixed
8.34%
$995.00
Not Available
3 Year Fixed
7.79%
$995.00
3 Year Fixed
8.49%
$1,795.00
5 Year Fixed
7.29%
$995.00
5 Year Fixed
8.24%
$1,795.00
5 Year Variable
9.89%
$995.00
5 Year Variable
9.90%
$1,795.00
Disclosure: Prime Rate (P) is 7.2%. Equitable Flex Lite and CHIP Mortgage rates shown. Rates/fees for other EQ and HEB products may differ. Rates shown are posted rates, actual rates may vary. APR rates available upon request. Rates may change without notice. Subject to lender approval. E&OE.
Save Money with RetireBetter, Canada's Top Reverse Mortgage Broker
Why Seniors in Ontario Work With RetireBetter
1
With our access to special low interest rates, we can save you thousands of dollars in interest.
2
We can get you larger loan approvals than you could get on your own.
3
We can reduce your initial setup costs by up to $500.
4
As a broker, we have the experience and knowledge to make the process stress-free for you.
Our Reverse Mortgage Process
Get a no payment loan easily in just a few steps
1
Speak to a Reverse Mortgage Expert
Explore your options with no obligations
2
Decide How You Want to Receive the Funds
Funds can be received in a lump sum or over time.
3
Sign Your Documents
We get all the paperwork ready for you to sign.
4
Enjoy Your Retirement
Enjoy your tax-free, payment-free loan for life.
SPEAK TO A CERTIFIED ADVISOR
1 (855) 999-3244How Does a Reverse Mortgage Work in Ontario?
Understanding a reverse mortgage in Ontario is crucial for homeowners considering this financial option. Here’s a step-by-step breakdown:
1
Eligibility and Assessment: The first step is determining eligibility. Homeowners in Ontario must be at least 55 years old. The amount you can borrow is influenced by your age, your home's appraised value, and the location.
2
Loan Application and Approval: Once eligibility is confirmed, the next step is the loan application. This involves a property appraisal to ascertain the current market value of your home, which in turn affects the loan amount.
3
Receiving Funds: After approval, you can choose how to receive the funds: as a lump sum, regular installments, or a combination of both. This flexibility allows homeowners to tailor the reverse mortgage to their specific financial needs.
4
Loan Repayment Conditions: A unique aspect of a reverse mortgage is that repayment is not required until certain conditions are met. These include the homeowner selling the property, moving out, or passing away. The loan balance, which includes the borrowed amount plus accrued interest, is then repaid, typically from the sale of the home.
RetireBetter Learning Center
In-depth articles that help you understand everything you need to know.
Is a Reverse Mortgage a Good Idea for You?
If you are a senior over the age of 55, try our SUITABILITY QUIZ to see if a reverse mortgage is right for you.
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Sorry, you're not eligible unless you own a home
Thank you for completing our suitability quiz.
You need to be a homeowner to be eligible for this type of loan.
However, you do have alternative options.
Congratulations, Looks Like You Have Some Options
Thank you for completing our suitability quiz.
A reverse mortgage or a no payment HELOC look like good options to consider.
Pay off debts on a lower income
Thank you for completing our suitability quiz.
We have concluded that this type of loan is a suitable product for you.
Find out how to alleviate debt on a lower income.
Stop working and retire
Thank you for answering these essential questions.
We have concluded that this type of no payment loan is a suitable product for you.
Find out how to stop working and retire comfortably.
Maintain a standard of living on a lower income
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We have concluded that a no payment loan is a suitable product for you.
Find out how to maintain a standard of living on a lower income.
Improve your lifestyle with a higher income
Thank you for answering these essential questions.
We have concluded that a Reverse Mortgage is a suitable product for you.
Find out how to improve your lifestyle with a higher income.
Help family members with financial assistance
Thank you for answering these essential questions.
We have concluded that a No Payment Equity Release loan is a suitable product for you.
Find out how to help family members with financial assistance.
It looks like a Reverse Mortgage is not for you
Thank you for answering these essential questions.
We have concluded that this loan option is not a suitable product for you.
However, there are alternative options.
Reverse Mortgage vs. Mortgages for Seniors
The difference between a Reverse Mortgage, Home Equity Lines of Credit (HELOC) and a Conventional Mortgage
Home Equity Line Of Credit
Includes:
Variable rate
Monthly payments required
Full Income requirements
Max loan 65% of home value
REVERSE MORTGAGE
Includes:
Variable rate or Fixed rate
No regular payments
Light income requirements
Max loan 59% of home value
Never owe more than value of home
CONVENTIONAL MORTGAGE
Includes:
Variable rate or Fixed rate
Monthly payments required
Full income requirements
Max loan 80% of home value
Could owe more than value of home
The Complete Guide to a Reverse Mortgage in Canada
Get instant access to our book that explains everything you need to know about a Reverse Mortgage in Canada.
Get expert insights on reverse mortgages that you won't find anywhere else.
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Frequently Asked Questions
Find answers to common questions we receive about reverse mortgages
What are the eligibility criteria for a Reverse Mortgage in Ontario?
To be eligible for a reverse mortgage in Ontario, homeowners must be at least 55 years old. The amount you can borrow is based on your age, your home's appraised value, and its location.
How does a Reverse Mortgage in Ontario affect homeownership?
With a reverse mortgage in Ontario, homeowners retain the title and ownership of their home. The loan is secured against the property, but homeowners can continue living in their home without any requirement to move out.
Can I still leave my home to my heirs if I get a Reverse Mortgage in Ontario?
Yes, you can still leave your home to your heirs. However, the reverse mortgage must be repaid, usually through the sale of the home, before it can be transferred.
What happens if the borrower of a Reverse Mortgage in Ontario passes away?
If the borrower passes away, the reverse mortgage becomes due. The loan, including the accumulated interest, is usually repaid from the sale proceeds of the home, or the heirs can choose to repay the loan to retain the property.
Are there any upfront costs associated with obtaining a Reverse Mortgage in Ontario?
Yes, there are some upfront costs involved in obtaining a reverse mortgage in Ontario, which may include a home appraisal fee, setup fees, and legal fees. These costs can often be financed as part of the reverse mortgage loan. Speak to an agent to find out more about what costs are specific to your situation.
Reverse Mortgage Articles
Discover the latest insights and information from our Reverse Mortgage Specialists
Reverse Mortgage Locations
Reverse Mortgages are available across Canada including the following Ontario locations:
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