FAQs

No. You remain the legal owner of your home. The title stays in your name, and you can continue living in the home for as long as you want, as long as you meet the basic conditions like paying property taxes, insurance, and maintaining the home.

Not at all. Many homeowners use reverse mortgage funds to travel, help their children buy homes, or make renovations. It’s a tool for financial flexibility—not just for people in hardship.

No. Your estate still owns the home. After you pass away or sell the home, the reverse mortgage is repaid from the proceeds of the sale, and any remaining equity goes to your heirs.

No monthly loan payments are required. The loan is repaid only when you sell, move out permanently, or pass away.

No. Reverse mortgages in Canada are structured with a “no negative equity guarantee.” You or your estate will never owe more than the fair market value of the home at the time of sale, provided you’ve met the terms of the loan.

That’s a common myth. Many financially stable retirees use reverse mortgages proactively to increase liquidity, avoid withdrawing from investments during market downturns, or fund lifestyle upgrades.

There are standard setup fees (e.g., appraisal, legal, closing), but everything is clearly disclosed up front. At My Ontario Reverse Mortgage, we walk you through all the numbers before anything is signed.

No. Funds received from a reverse mortgage are not counted as income and do not affect your eligibility for OAS, GIS, or CPP.

No, as long as you follow the basic requirements (live in the home, maintain it, pay property taxes and insurance), you cannot be forced to sell or move.

You can repay the reverse mortgage at any time. Some lenders may charge an early repayment fee depending on when you pay it off, but this is always explained in advance.

At My Ontario Reverse Mortgage, we believe in full transparency. The most common concern is compound interest. Since you’re not making monthly payments, interest adds to the loan balance over time, which means the amount you owe increases.

Here are key considerations:

• Your home equity may shrink over time.
• There may be less left for your estate after the loan is paid back.
• Early repayment may involve a prepayment fee, depending on the lender.

That said, for many Ontario homeowners, the benefit of no monthly loan payments and staying in their home outweighs this drawback.

Reverse mortgages are ideal for:

• Homeowners aged 55 or older
• People who want to stay in their home long-term
• Retirees with limited income but high home equity
• Those looking to cover healthcare costs, home improvements, or support family
• Seniors who prefer not to sell or downsize

It’s not just for those in financial distress—many financially stable people use reverse mortgages for flexibility.

The cost of getting a reverse mortgage in Ontario depends on the lender, your location, and the loan structure you choose. While each case is unique, here are some estimated upfront fees you may encounter:

• Appraisal fee: $300–$500
• Legal fees: $1,000–$1,500 (approx.)
• Closing and administrative fees: $995 to $1,799
• Independent legal advice (required by Ontario law): $300–$700

There are no monthly loan payments, and in most cases, these fees can be rolled into the mortgage itself—so you don’t need to pay out of pocket right away.

Please note: The amounts listed here are estimates only. Actual fees and costs may vary based on your lender, location, and property. Always request a personalized quote to get accurate, up-to-date information. At My Ontario Reverse Mortgage, we ensure all costs are explained clearly before you commit to anything.

Those who benefit most often include:

• Homeowners over 55 who want extra retirement income
• Seniors with most of their net worth tied up in their home value
• People looking to avoid dipping into investments or RRSPs
• Individuals who want to stay in their home but reduce financial stress

The reverse mortgage can provide tax-free money while maintaining independence and comfort.

When you pass away, your reverse mortgage must be repaid. Here’s how it works:

1. Your estate is notified of the loan balance.
2. The home is usually sold to repay the loan.
3. Any leftover equity after paying the reverse mortgage goes to your heirs.
4. If your family wants to keep the home, they can repay the loan using other funds.

If the home sells for less than the balance, the “no negative equity guarantee” protects your estate from owing more than the home’s fair market value.

In Ontario: 

• The borrower’s estate retains ownership of the home.
• The family has the right to sell the home or repay the loan to keep it.
• Lenders must give reasonable time (usually 6 months) to settle the loan.

The family is not personally liable unless they co-signed. The estate handles repayment.

You can borrow up to 55% of your home’s appraised value, based on:

• Your age (older borrowers qualify for more)
• Location and condition of your home
• Current interest rates
• The lender’s specific criteria

At My Ontario Reverse Mortgage, we offer a free estimate to help you find your maximum.

In Canada, the absolute maximum is 55% of the home’s current market value, but the final amount depends on:

• Your age (the older you are, the more you qualify for)
• Your home’s location and condition
• Your chosen lender and product

For example, a 75-year-old in Toronto may qualify for more than a 60-year-old in a rural area.

You must be at least 55 years old to qualify, but the older you are, the more you can borrow.

Many clients find the sweet spot is:

• Between 65 and 75 if they’re retired and need extra income
• Older than 75 if they want to increase liquidity without touching savings

It really depends on your personal needs and goals.

Yes. You can pay off your reverse mortgage at any time, but keep in mind:

• Some lenders charge a prepayment fee, especially in the first 3–5 years.
• The amount of the fee may reduce the longer the loan is active.
• There’s usually no fee if you sell the home or pass away.

We explain all fees clearly up front.

There is no down payment required for a standard reverse mortgage if you already own your home.

However, if you’re using a reverse mortgage to purchase a home (offered by some lenders), the minimum down payment is typically 30%–70% of the purchase price, depending on your age and property value.

Interest rates vary depending on the lender and the product type.

As of 2024:

• Fixed rates: approx. 6.5% – 7.5%
• Variable rates: may be slightly lower

Rates are higher than traditional mortgages due to the no-payment feature and longer term.

We help you compare reverse mortgage rates from HomeEquity Bank, Equitable Bank, and others to find the best fit.

The payout refers to the amount of tax-free money you receive. It can be structured as:

• A lump sum payment
• Scheduled payments over time
• Or a combination of both

The total amount is based on your age, home value, and location. Funds can be used however you choose.

For most Ontario homeowners over 55, it’s quite straightforward. You do not need:

• A strong credit score
• Regular income
• Employment verification

Approval depends mainly on:

• Your age
• Your home’s appraised value
• Your property type and location

We handle all the paperwork and guide you every step of the way.

If you’ve taken all your available funds:

• The loan stops growing, but no repayment is required until the home is sold or vacated.
• You can remain in the home indefinitely as long as you meet the conditions.
• You may choose to refinance if more equity becomes available.

You’ll never be forced to move just because your available funds are used up.

Yes. You 100% own your home with a reverse mortgage.

You are:

• Responsible for maintenance, taxes, and insurance
• Free to sell the home at any time
• In control of all decisions about your property

The reverse mortgage is a loan secured against the home, not a transfer of ownership.