Ontario Reverse Mortgage FAQs
Answers to common questions from Ontario seniors and their families.
Will the bank own my home?
No. You keep 100% ownership. You have the title, you make the decisions. The mortgage is secured against your home, but you remain the owner.
What happens if I live longer than expected?
You stay in your home. There's no time limit. You can stay as long as it's your primary residence, even if the loan balance grows beyond your home's value (thanks to Ontario's non-recourse protection).
Can my children inherit the home?
Yes. Your estate inherits the home. They can either repay the mortgage (from other assets, sale, or refinance) or sell the home and keep any remaining equity.
Are there fees or closing costs?
Yes, similar to a traditional mortgage: appraisal, legal fees, and potentially lender fees. These can often be rolled into the mortgage so you don't pay out-of-pocket.
How does it affect government benefits?
It doesn't affect OAS, GIS, or CPP. Reverse mortgage proceeds aren't considered taxable income and don't affect most government benefits. Always consult a tax professional.
What if I want to move or sell later?
You can sell anytime. When you sell, the mortgage is repaid from the sale proceeds, and you keep any remaining equity. You can also port the mortgage to a new Ontario home in some cases.