Who Qualifies
The qualification requirements for a reverse mortgage are significantly simpler than a traditional mortgage. There is no income test, no credit score minimum, and no stress test. Here are the key requirements:
Age Requirement
All borrowers on title must be 55 or older. If you are a couple, qualification is based on the younger borrower's age — which means the younger partner determines the maximum Loan-to-Value ratio. A 72-year-old with a 58-year-old spouse will qualify based on age 58.
Non-borrowing spouses who are under 55 can be on title but not on the reverse mortgage. This creates risk — if the borrowing spouse passes away or moves into care, the loan becomes due. Discuss this scenario carefully with your advisor and lawyer.
Property Requirements
The home must be your primary residence — the place you live most of the year. Vacation properties, rental properties, and investment properties do not qualify.
Property types that typically qualify: single-family homes, townhomes, duplexes, and most condominiums. Some mobile homes on permanent foundations may also qualify depending on the lender.
Property types that may not qualify: co-ops, leasehold properties, properties on leased land, commercial or mixed-use buildings, some rural properties with large acreage, homes in very remote locations, and properties in poor physical condition. Each lender has different criteria — we compare all three.
Condominiums: Most condos qualify, but the lender will review the strata's financial health, reserve fund, and any upcoming special assessments. Buildings with significant deferred maintenance, ongoing litigation, or very low reserve funds may be declined.
Existing Mortgages & Liens
Any existing mortgage, HELOC, or line of credit secured against the home must be paid off from the reverse mortgage proceeds. This is one of the most common reasons people take a reverse mortgage — to eliminate monthly mortgage payments in retirement.
If your existing debt is higher than what the reverse mortgage can provide, you would need to pay the difference from other funds, or the reverse mortgage may not be feasible.
Income & Credit
There is no formal income test and no minimum credit score. However, lenders will review your overall financial situation to confirm you can maintain ongoing property costs — specifically property taxes, homeowners insurance, strata fees if applicable, and basic home maintenance.
If there are concerns about your ability to maintain these costs, some lenders may set aside a portion of the loan proceeds in a reserve fund to cover property taxes for a period of time.
A history of property tax arrears or unpaid strata fees may be a concern, but it does not automatically disqualify you. We can discuss your specific situation.
Canadian Lenders
Three lenders offer reverse mortgages in Canada. As independent brokers, we compare all three on your behalf.
HomeEquity Bank
The CHIP Reverse Mortgage — the original Canadian reverse mortgage provider. Established track record. Age 55+. Up to 55% LTV. Fixed and variable rate options.
Equitable Bank
The Equitable Flex line. Newer entrant providing competitive rates. Age 55+. Flexible disbursement options. Growing market presence.
Bloom Financial
Third option in the Canadian market. Different rate structures and features. We compare all available products to find your best fit.
Typical Costs
| Cost | Typical Range |
|---|---|
| Home Appraisal | $300 – $600 |
| Independent Legal Advice | $500 – $1,000 |
| Closing / Admin Fee | $0 – $1,795 |
| Title Insurance | $250 – $500 |
| Total Setup Costs | $1,050 – $3,895 |
Most setup costs can be deducted from the loan proceeds — you don't typically pay out of pocket.