Reverse mortgage lenders in Canada
Reverse mortgage lenders let homeowners aged 55 and over borrow against their home with no required monthly payments. Only a small number of lenders offer reverse mortgages in Canada, and they reach borrowers through their own specialists and through mortgage brokers.
The reverse mortgage providers listed here describe their own products. The product is similar from lender to lender in structure; what differs is how much each will lend, where, and at what cost.
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Are you a lender? List here freeHow reverse mortgage lenders decide how much to lend
The amount is a percentage of the home’s appraised value, and it rises with the age of the youngest borrower, because the expected term is shorter. Location and property type matter too, lenders are more conservative outside larger markets and on property types that are harder to sell.
Where there are two owners, both must be on the loan and both must meet the age requirement. The calculation follows the younger borrower, which surprises couples with a wide age gap.
Reverse mortgage companies and their costs
Reverse mortgage rates are higher than a conventional mortgage or a HELOC, because the lender receives no payments and carries the risk that the balance outgrows the home. There are set-up costs, an appraisal, independent legal advice and an administration fee, and a penalty if you repay early in the term.
Canadian reverse mortgages carry a no-negative-equity guarantee: provided you keep up property taxes, insurance and maintenance, the amount owed at sale will not exceed the home’s fair market value.
Going to a reverse mortgage lender directly
With so few lenders, some borrowers go directly to one. A broker adds the most value by comparing the reverse mortgage against the alternatives, a HELOC if you can service interest, downsizing, or a provincial property tax deferral program, rather than by comparing lenders.
Whichever route you take, you will be required to get independent legal advice before signing. Involve family early, since the loan reduces the estate.
Common questions
Who offers reverse mortgages in Canada?
A small number of specialist lenders. They sell through their own specialists and through mortgage brokers. Check any provider’s regulatory status with OSFI or the provincial regulator, listings here are self-reported.
Are reverse mortgage rates the same at every lender?
No. Rates and the maximum amount available differ between lenders and by term, age, location and property. They are consistently above conventional mortgage and HELOC rates.
Can you lose your home with a reverse mortgage?
Not because of the growing balance, the no-negative-equity guarantee caps what is owed at the home’s fair market value at sale. You can default by not paying property taxes, not insuring the home, or not maintaining it, since those are conditions of the loan.
Should I use a broker for a reverse mortgage?
A broker is most useful for checking whether a reverse mortgage is the right product at all, against a HELOC, downsizing or a tax deferral program. If it is, the broker can also compare the lenders that offer one.