How much down payment do I need for a home in Ontario?

In Canada, the minimum down payment is 5% for homes up to $500,000. For homes between $500,000 and $1,499,999, you need 5% on the first $500,000 and 10% on the remainder. Homes $1.5 million or more require 20% down.

What is a mortgage broker and how are they different from a bank?

A mortgage broker works independently and has access to 100+ lenders, including major banks, credit unions, and alternative lenders. Unlike a bank representative who can only offer their own products, a broker shops the market to find you the best rate and terms.

What are the costs of using a mortgage broker?

For most residential mortgages, there is no cost to the borrower. The mortgage broker is compensated by the lender. In some cases involving private or alternative lending, a broker fee may apply, which will always be disclosed upfront.

Can I get a mortgage with bad credit in Ontario?

Yes, there are mortgage options for borrowers with less-than-perfect credit. Alternative and private lenders offer solutions for those with bruised credit, though rates may be higher. A mortgage broker can help find the best option for your situation.

Services

Reverse Mortgages in Ontario

Unlock the equity in your home — without selling it or making monthly payments.

If you’re a homeowner aged 55 or older in Southern Ontario, a reverse mortgage may be one of the most practical financial tools available to you. It allows you to convert a portion of your home’s equity into tax-free cash while continuing to live in your home with no required monthly mortgage payments.

As a Level 2 Mortgage Agent with DLC National Ltd., I help homeowners across Hamilton, Burlington, Brantford, St. Catharines, Caledonia, and the Kawarthas access reverse mortgage solutions through Canada’s licensed lenders.

What Is a Reverse Mortgage?

A reverse mortgage is a loan secured against the appraised value of your primary residence. Unlike a traditional mortgage, you are not required to make regular monthly payments. Instead, the loan — including accumulated interest — is repaid when you sell the home, move out permanently, or upon the death of the last borrower.

The funds you receive are tax-free and do not affect your Old Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits. You retain full ownership and title of your property throughout the life of the loan.

Eligibility Requirements

All borrowers listed on title must be 55 years of age or older
The property must be your primary residence (occupied at least six months per year)
Eligible property types include detached homes, semi-detached, townhouses, and some condominiums
Any existing mortgage or secured debt must be paid off from the reverse mortgage proceeds

How Much Can You Borrow?

Under OSFI Guideline B-20, reverse mortgage lenders in Canada can advance up to 55% of your home’s appraised value. The exact amount depends on your age, property location, property type, and current market conditions. Older borrowers qualify for a higher percentage. Loan amounts typically range from $20,000 to $750,000.

Reverse Mortgage Lenders in Canada

There are currently three licensed reverse mortgage lenders operating in Canada:

HomeEquity Bank (CHIP Reverse Mortgage): Canada’s original reverse mortgage provider with over 30 years in the market. Five-year fixed rates start around 6.64%. Setup fee is approximately $1,795.
Equitable Bank: Entered the reverse mortgage market in 2018. Offers the Flex Lite product (up to 40% LTV) with five-year fixed rates starting around 6.44% and a $995 setup fee, as well as the Flex product (up to 55% LTV).
Bloom Finance: Launched a lifetime fixed-rate product in late 2025. Rates start around 6.69% with fees of approximately $2,300.

Interest Rates and Costs

Reverse mortgage interest rates in Canada are typically 1% to 3% higher than conventional mortgage rates, currently ranging from approximately 6.44% to 8.5% depending on the lender, product, and term selected.

In addition to interest, you should expect:

Independent legal advice (required by all lenders)
Home appraisal fee
Lender setup or administration fee ($995 to $2,300 depending on the lender)
Potential early repayment penalties if you exit within the first five years

How the Loan Is Repaid

Repayment is triggered by one of three events: the sale of the home, the homeowner moving out permanently, or the passing of the last borrower on title. All three Canadian reverse mortgage lenders offer a no-negative-equity guarantee, meaning you will never owe more than the fair market value of your home at the time of repayment.

Common Uses for a Reverse Mortgage

Supplementing retirement income
Covering healthcare or in-home care costs
Funding home renovations or accessibility modifications
Consolidating existing debts
Helping family members with early inheritances
Covering property taxes or day-to-day living expenses

Important Considerations

While a reverse mortgage offers significant flexibility, it is important to understand how compound interest works in this context. Because no payments are made during the loan, interest compounds over time and reduces the equity remaining in your home. This can impact the inheritance you leave to your beneficiaries.

I always recommend discussing a reverse mortgage with your family and seeking independent legal and financial advice before proceeding.

Why Work With a Mortgage Broker?

Unlike going directly to a single lender, working with a broker gives you access to all three reverse mortgage providers in Canada. I can compare rates, fees, and product features across HomeEquity Bank, Equitable Bank, and Bloom Finance to help you find the most suitable option.

I serve homeowners throughout Southern Ontario, including Hamilton, Burlington, Brantford, St. Catharines, Caledonia, and the Kawarthas. Whether you’re looking to supplement your retirement, manage healthcare costs, or gain more financial flexibility, I’m here to walk you through the process step by step.

Ready to explore your options?

Let’s discuss whether a reverse mortgage is right for you.

Call Me