Reverse Mortgage Ontario
Reverse Mortgages in Ontario
If you are 55 or older and your home holds more value than your bank account, a reverse mortgage is one way to access that equity without selling and without monthly payments. It is also a decision worth taking slowly, because it has real trade-offs.
We are an FSRA-licensed Ontario mortgage brokerage, not a lender. We compare reverse mortgage options across providers and give you the balanced version, including the downsides, so you and your family can decide with clear eyes.
Written by the HB Mortgage Centre team. Reviewed by Hardeep Batoo, Principal Broker (licence M13002408). HB Mortgage Centre is an FSRA-licensed brokerage (#13449). Last updated: June 23, 2026.
FSRA Brokerage #13449·Hardeep Batoo, Broker Licence #M13002408·Ontario-wide·Independent legal advice required
TL;DR
The short version
A reverse mortgage lets a homeowner aged 55 or older borrow against their home equity, with no required monthly payments. The loan is repaid when you sell, move out, or pass away. You keep ownership of your home. The trade-off is that interest compounds over time, which reduces the equity left for your estate. It suits some people well and others not at all, which is why the comparison matters.
The basics
What a reverse mortgage actually is
A reverse mortgage is a loan secured against your home that is available to homeowners aged 55 and older. Instead of you paying the lender each month, the interest is added to the balance, and the loan is repaid later, usually when the home is sold, when you move out, or after you pass away.
You stay on title and continue to own your home. How much you can access depends on your age, your home's value and location, and the lender's assessment. Product availability, the maximum amount, property eligibility, rates, and terms all depend on lender rules and an assessment, so the figures are never fixed in advance.
Balanced view
The honest pros and cons
A reverse mortgage can help because:
- It frees up cash from your home without requiring you to sell or move.
- There are no required monthly mortgage payments.
- The money you receive is generally not treated as taxable income.
It also has real downsides:
- Interest compounds, so the balance grows over time and the equity left in your home shrinks.
- It can reduce what your estate passes on to your family.
- It is usually a more expensive way to borrow than some alternatives, such as a HELOC, if you can qualify and manage payments.
We put both sides in front of you on purpose. A reverse mortgage is a good answer for some situations and the wrong answer for others, and the only way to know is to look at the trade-offs honestly.
Estate and ownership
What happens to your home and your estate
This is the question most families ask first, so here it is plainly.
You keep ownership of your home. Reverse mortgages in Canada generally include a no-negative-equity feature, which means that as long as you meet your obligations, you are not required to repay more than the fair market value of the home when it is sold.
Because interest compounds, the balance owing grows over time, and that reduces the equity remaining for your estate. How much depends on how long the reverse mortgage is in place, the rate, and how your home's value changes. We cannot promise a future home value or a specific remaining equity, because those depend on the market.
For a fuller explanation, see what happens to a reverse mortgage when you die. This page is general information, not legal, tax, or estate advice.
Alternatives
Reverse mortgage or HELOC: which fits
A home equity line of credit is the most common alternative. The key difference is payments and qualification. A HELOC usually requires income to qualify and monthly interest payments, but it can cost less. A reverse mortgage has no required monthly payments and easier income qualification, but interest compounds and the cost is usually higher over time.
In plain English, if you can comfortably qualify for and service a HELOC, it is often the cheaper route. If monthly payments or income qualification are the problem, a reverse mortgage may be the better fit. We compare both honestly. See reverse mortgage vs HELOC for the full comparison.
Providers
CHIP and other providers, compared independently
You may have seen advertising for CHIP, the reverse mortgage from HomeEquity Bank. It is one provider. There are others, such as Equitable Bank. Each has different terms, and the right choice depends on your situation.
Going direct to one lender gives you one set of terms. As a brokerage, we can compare providers side by side and explain the differences in plain language. See CHIP through a broker vs going direct. Product names and terms here are described as accurately as we can, and they are subject to each lender's current rules.
Rates & costs
What a reverse mortgage costs
A reverse mortgage has an interest rate plus any applicable setup costs, such as appraisal and legal fees. Because interest compounds, the timeline matters: the longer the loan is in place, the more it costs.
We do not post rates on this page, because they change and depend on the provider and your situation. For current pricing, see reverse mortgage rates. You can also explore a rough figure with our reverse mortgage calculator, which gives an estimate only, not an offer, an approval, or an eligibility decision.
What it costs
- InterestCharged on the outstanding balance and compounded over time. The balance grows because no payments are made.
- Setup / origination feeCharged by the lender at funding
- Home appraisal feeRequired by the lender
- Independent legal adviceYour lawyer's fee for reviewing the documents
- Prepayment penaltyIf the mortgage is repaid before the end of the term
Reverse mortgage amounts, rates, eligibility, and product details are subject to lender criteria, property review, age requirements, and lender approval. O.A.C. E.&O.E.
Benefits
Reverse mortgages and your benefits
Because reverse mortgage proceeds are generally not treated as taxable income, they may interact differently with income-tested benefits than taxable income would. The details depend on current government rules and your personal situation, so confirm with the relevant authority.
For a fuller explanation, see reverse mortgages and OAS/GIS. This is general information, not tax or benefits advice.
Reverse mortgages and OAS/GIS →For families
For adult children and families
If you are researching this for a parent, you are not alone, and it is a sensible thing to do together. A good reverse mortgage decision usually involves the whole family and the homeowner's own lawyer. We are happy to walk through the options with you and your parent at a pace that suits everyone.
See our family guide to reverse mortgages.
Family guide to reverse mortgages →How we help
How we help, and why independent advice matters
We start with a calm, no-pressure conversation about your goals and your situation. We compare providers, explain the trade-offs, and give you the balanced version in writing.
We also recommend that you get independent legal advice before proceeding with a reverse mortgage, and many lenders require it. A reverse mortgage should suit you specifically, so suitability for your circumstances comes first. Everything is subject to lender assessment and approval.
FAQ
Common questions about reverse mortgages
What is a reverse mortgage and how does it work in Ontario?+
What are the real downsides of a reverse mortgage?+
Can I lose my home, and what happens to my estate?+
Reverse mortgage or HELOC, which is better for me?+
Will a reverse mortgage affect my OAS or GIS?+
Talk it through, with us and with your lawyer
A reverse mortgage is a decision to make slowly and with good advice. Start with a no-pressure conversation, bring your family if you like, and we will lay out the balanced picture. We will also point you toward independent legal advice before anything is signed.
For reverse mortgages, independent legal advice is required before completion. HB Mortgage Centre provides mortgage brokerage services only - not legal, tax, estate, investment, or benefits advice. Consult a qualified advisor for those matters. Amounts, rates, eligibility, and product details subject to lender criteria and approval. O.A.C. E.&O.E.
FSRA Brokerage #13449 · Hardeep Batoo, Broker Licence #M13002408 · Independent legal advice required before any reverse mortgage closes