What are the eligibility requirements for a Reverse Mortgage?

Author: Gary Corriveau

To be considered eligible for a Reverse Mortgage in Canada, you must be:

  • A Canadian homeowner, and
  • Aged 55 or older.

If you have a spouse and you are both on the title of the house:

  • Both of you must be at least 55 years old to be eligible, and
  • Both of you must be listed on the reverse mortgage application.

Additionally, the home you are using to secure the reverse mortgage must be your primary residence. This usually means you have lived in the home for at least six months to a year, and you must continue to live in the home while the loan is outstanding.

If you currently have any other outstanding loans or lines of credit that are secured by your home, such as a mortgage or home equity line of credit (HELOC), you must pay it off when you get a reverse mortgage. If the loans are less than the funds available from the reverse mortgage, you can use the money from the Reverse Mortgage to pay them off.

Reverse Mortgage borrower obligations

Because you will still retain ownership and occupancy of the home, you have several obligations. These include:

  • Maintaining the property,
  • Taking out an active fire insurance policy,
  • Paying property taxes, and/or
  • Paying condo fees.