Mortgage · FSRA #13463Paying for care & retirement
What Happens to a Reverse Mortgage When You Move Into Long Term Care?
Quick answer: Moving out of the home permanently, including into long-term care, is generally a repayment trigger once no borrower lives there any more. If a spouse on the loan stays in the home, the loan usually continues. Check your lender's timelines.
A move into care does not mean the bank suddenly owns your house. What happens next depends mainly on whether another borrower still lives in the home and whether the move is temporary or permanent. Here is the plain English version for Ontario families.
The short answer
If one borrower moves into long term care but another borrower continues living in the house as their principal residence, the reverse mortgage can usually continue. If the last borrower moves out permanently, the loan will generally become due and must be repaid according to the lender's rules.
That answer sounds simple, but the details matter. A temporary hospital stay is different from a permanent move. A spouse who is a borrower is different from a spouse who is not on the loan. Repayment becoming due is also not the same thing as the bank automatically taking or selling the house.
The key question: does a borrower still live in the home?
A Canadian reverse mortgage is secured by your principal residence. The Financial Consumer Agency of Canada explains that the home must usually be your primary residence, which typically means living there for at least six months of the year. It also lists moving out of the home as one of the events that can make repayment due.
For a couple, the practical question is not simply whether someone has moved into care. It is whether at least one borrower still uses the mortgaged home as their principal residence and continues meeting the loan conditions.
If one spouse moves into care and the other stays home
This is the most reassuring scenario. If both spouses are borrowers and one stays in the house, the loan can usually remain in place. Equitable Bank's current reverse mortgage FAQ, for example, describes the loan as becoming due when the last borrower moves into a long term care or retirement residence.
The spouse who remains at home still needs to keep the property taxes and home insurance current and maintain the property. Interest also continues to accrue on the money already borrowed. The move does not erase those obligations, but it does not automatically force the spouse who remains to leave.
If the last borrower moves out permanently
When no borrower continues to live in the home as a principal residence, the reverse mortgage will generally become due. The amount to repay normally includes the money borrowed, accrued interest, and any applicable fees or charges.
The lender does not simply become the owner of the property. The borrower still owns the house. The usual path is to list the home, complete the sale, repay the mortgage from the sale proceeds, and keep the equity that remains. A family that wants to keep the home may be able to repay the loan from savings or new financing instead, provided it can meet the lender's deadline.
This is why the phrase “the loan becomes due” matters. It means repayment must be arranged. It does not dictate that a particular real estate agent be used, that the lender sets the sale price, or that the family receives nothing after repayment.
How much time do you have?
There is no single Canadian deadline that applies to every lender and every contract. The Financial Consumer Agency of Canada specifically says lenders set their own policies for repayment timing after a triggering event.
As one current example, HomeEquity Bank says CHIP clients have 180 days to settle the loan after moving from the principal residence. Another lender or an older contract may use different language, conditions, or timing. Treat 180 days as one product example, not a universal promise.
Ask the lender or servicing team for a written payout statement that shows:
- The exact amount owing on a stated date
- The date by which repayment must be completed
- Whether interest continues during the settlement period
- Whether any prepayment or discharge charge applies
- What the lender needs if a sale is already underway
What if the move is temporary?
A hospital stay, rehabilitation stay, respite placement, or trial period in a care residence is not automatically the same as deciding to leave the home permanently. Still, families should not guess how a long absence will be treated.
If the absence may last for months, contact the lender early and describe the situation accurately. Ask what documents, notice, or confirmation it needs. Speak with the home insurer too, since a longer absence can affect how the property must be monitored or insured. Keep taxes, insurance, utilities, and maintenance current while the answer is being confirmed.
Do not transfer title, rent out the whole home, or describe a permanent move as temporary just to avoid a difficult conversation. Those choices can affect the mortgage contract and should be reviewed before anything is signed or changed.
Retirement homes and long term care are different, but the residence question is similar
In Ontario, a retirement home is private housing with optional services, while a long term care home provides a higher level of regulated care through a provincial placement process. The Ontario government explains the difference and how each type of home is funded.
For the reverse mortgage, however, the central issue is often the same: has the last borrower permanently stopped using the mortgaged house as a principal residence? Some lender contracts expressly name both retirement residences and long term care homes as events that make the balance due.
A simple couple example
Imagine Helen and David are both borrowers. David moves into long term care while Helen remains in their Mississauga home. Helen continues to treat the house as her principal residence, pays the taxes and insurance, and maintains it. Their lender confirms in writing that the reverse mortgage can continue because Helen remains a borrower living in the home.
Years later, Helen decides to move permanently to a retirement residence. At that point, the last borrower has left the home. The family asks for a payout statement, lists the house, repays the reverse mortgage when the sale closes, and Helen keeps the remaining equity.
This example is deliberately simple. Real files can be affected by who is on title, who signed the loan, the lender, the contract date, and whether a move is truly permanent. Those are facts to verify, not details to assume.
Five steps before a move
- Find the reverse mortgage agreement. Look for the sections on principal residence, default, repayment, and due dates.
- Confirm every borrower. Write down who is on the mortgage and who is on title. Do not assume they are the same.
- Call the lender or servicing team. Explain who is moving, who is staying, and whether the move is expected to be temporary or permanent.
- Ask for the answer in writing. If repayment will be due, request the payout amount, deadline, charges, and required sale updates.
- Coordinate the care and housing plan. A mortgage professional, independent lawyer, insurer, and real estate professional may each have a different piece of the plan.
Plan for this question before taking the loan
If long term care is a realistic concern, ask about it before choosing a reverse mortgage lender. Compare the contract language, repayment timeline, prepayment rules, and treatment of a spouse who remains at home. A slightly lower rate may not be the deciding factor if another product offers terms that better match your likely care plan.
It is also worth comparing the cost of a move with the cost of bringing support into the home. My guides to using home equity for home care and paying for a retirement home in Ontario explain those two paths. If the concern is what happens after death rather than a move, read what happens to a reverse mortgage when you die.
Sources checked for this article
- Financial Consumer Agency of Canada: Reverse mortgages
- Equitable Bank: Reverse mortgage FAQ
- HomeEquity Bank: Reverse mortgage problems, myths and truths
- Ontario: Find a retirement home and understand the care options
Questions people ask about this
Does a reverse mortgage become due when I move into long term care?
If you are the last borrower living in the home and you move out permanently, the reverse mortgage will generally become due. The repayment process and deadline are set by your lender and contract, so ask for both in writing before making assumptions.
What if only one spouse moves into care?
If the other spouse is a borrower and continues to use the home as their principal residence, the reverse mortgage can usually continue as long as all loan obligations are met. Confirm how your particular contract treats both spouses, especially if one spouse is not on title or is not a borrower.
Do I have to sell the home when the reverse mortgage becomes due?
Not necessarily. Selling the home is the most common way to repay the balance, but the borrower or family may also use savings or other financing. What matters is that the full amount due is repaid within the lender's deadline.
How long do I have to repay after a permanent move?
There is no single deadline for every Canadian reverse mortgage. The Financial Consumer Agency of Canada says lenders establish their own repayment timing. HomeEquity Bank currently says its clients have 180 days after moving from the principal residence, but another lender or contract may differ.
Does a temporary hospital or rehabilitation stay make the loan due?
A temporary stay is not the same as deciding to move out permanently, but the exact residence rules come from your contract. Contact the lender and home insurer early if an absence may be lengthy, and keep property taxes, insurance, and maintenance current.
When does a reverse mortgage have to be repaid?
FCAC lists four triggers: you sell the home, you move out, the last borrower dies, or you default on the loan terms. No regular payments are required before then.
Source: FCAC, Reverse mortgages
This article is general education for Ontario residents, current to September 14, 2026, and is not legal, tax, or investment advice. Reverse mortgage residence rules, repayment timelines, fees, and charges vary by lender and contract. Please confirm your own terms with the lender and an independent Ontario lawyer before making a decision.