No monthly payments. No selling. No moving. The older you are, the more equity you can unlock — use the estimator below to see your number.
The key variable is age — the older the youngest borrower, the higher the maximum loan-to-value. Adjust below to see your estimate.
Age-based equity access
| Age of youngest borrower | Approx. max LTV | Example: $750K home | CHIP limit |
|---|---|---|---|
| 55 | ~15% | ~$112,500 | ✓ Eligible |
| 60 | ~25% | ~$187,500 | ✓ Eligible |
| 65 | ~33% | ~$247,500 | ✓ Eligible |
| 70 ← typical | ~40% | ~$300,000 | ✓ Eligible |
| 75 | ~46% | ~$345,000 | ✓ Eligible |
| 80 | ~52% | ~$390,000 | ✓ CHIP max |
| 85+ | ~55–59% | ~$412–442K | ✓ CHIP/EQ max |
Approximate figures. Actual LTV also varies by property type, location, and lender. Urban Ontario homes generally qualify for higher LTV.
All registered homeowners must be 55+. If married or in a common-law relationship, the youngest partner's age determines your maximum LTV — a 72-year-old with a 58-year-old spouse qualifies at the 58-year-old rate.
The home must be your primary residence — not a rental, vacation property, or investment. You must live there for at least 6 months per year. Equitable Bank serves ON, BC, AB, and QC only.
Both CHIP and Equitable Bank require a minimum appraised home value (Equitable: $250K). Eligible home types include detached, semi-detached, townhouse, and select condo-apartment properties.
| Loan amount | Rate | Closing fee | 5-yr accumulated interest | APR |
|---|---|---|---|---|
| $150,000 | 6.34% | $1,795 | ~$54,939 | 6.63% |
APR is calculated as total interest over 5 years + closing fee, annualized. Interest compounds semi-annually. Closing and administrative fees typically cover discharge of existing mortgage + new registration. For current live rates, call us at 647-673-8544 — we source from both CHIP and Equitable Bank and find the best rate for your situation.
Why does older age mean more equity access?
The reverse mortgage lender needs to ensure the loan plus accrued interest doesn't exceed your home's value over your expected remaining lifetime. Older borrowers have a shorter expected loan duration, so lenders can safely advance a higher percentage — a 55-year-old might live 35+ more years (interest compounds significantly), while an 80-year-old has a shorter horizon. This is the fundamental actuarial logic behind age-based LTV scaling.
What types of homes qualify for a reverse mortgage?
Single-family detached homes, semi-detached, link homes, townhouses/row houses, and detached duplexes/triplexes/quadruplexes typically qualify. Condo-apartments also qualify in most cases. Mobile homes, co-ops, and properties with severe structural issues generally don't qualify. Both CHIP and Equitable Bank conduct their own appraisal to confirm.
CHIP vs Equitable Bank — which is better?
Equitable Bank offers up to 59% LTV (vs CHIP's 55%), making it the better choice if maximizing your access is the priority. CHIP has 35+ years of reverse mortgage experience, broader geographic availability, and a larger servicing infrastructure. Rates are competitive between both — we compare both for every client and recommend based on your specific situation, home type, and location.
How are the funds paid out?
You can receive your funds as a lump sum at closing, in regular monthly advances (like a pension supplement), as a line of credit you draw on when needed, or any combination of the above. Equitable Bank specifically highlights their flexible advance options — ideal if you want to supplement monthly income rather than take a large lump sum.
Does a reverse mortgage affect my OAS or GIS benefits?
No — reverse mortgage funds are considered loan proceeds, not income. They do not affect your Old Age Security (OAS), Guaranteed Income Supplement (GIS), or Canada Pension Plan (CPP) benefits. This is one of the key advantages over drawing from an RRSP or RRIF, which would count as taxable income.
Can I make voluntary prepayments?
Yes — both CHIP and Equitable Bank allow voluntary prepayments, typically up to 10–15% of the original principal per year without a penalty. This lets you manage the compounding interest if you want to preserve more equity for your estate. Prepaying is not required, but the option exists.
What are the closing costs?
Typical closing costs include the lender's closing and administrative fee (~$1,795 for CHIP), an independent legal fee (~$300–500 for a reverse mortgage specialist review), and the cost of a home appraisal (~$300–500). These are usually rolled into the mortgage balance rather than paid out of pocket. We outline all costs in writing before you commit to anything.
What happens to the reverse mortgage when I pass away?
The loan becomes due. Your estate has a set period (typically 6 months, extendable in certain circumstances) to repay the full balance — principal + accrued interest + fees. This is normally done from the sale proceeds of the home. Any remaining equity after repayment belongs to your estate and heirs. Under the No Negative Equity Guarantee, the estate will never owe more than the home sells for.
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In Ontario, most traditional lenders require a minimum credit score of 600 for an insured mortgage. For best conventional rates, a score of 680 or higher is recommended.
If your credit score is between 500 and 600, alternative B-lenders and private mortgage lenders may still approve you — though at a higher rate. My Future Mortgage works with a wide network of alternative lenders across Ontario.
Canadian federal rules set minimum down payments at 5% for homes up to $500,000, 10% on the portion between $500,000 and $1 million, and 20% for homes over $1 million.
First-time home buyers can access the First Home Savings Account (FHSA) and the Home Buyers' Plan (HBP) to boost their down payment.
Yes. While traditional A-lenders decline scores under 600, B-lenders and private mortgage lenders offer refinancing for credit-challenged borrowers. Equity is the most important factor.
My Future Mortgage specializes in connecting Ontario homeowners with the right lender for their unique credit situation.
If you switch lenders at renewal, you must re-qualify at the stress test rate (contract rate + 2% or 5.25%, whichever is higher). Staying with your current lender typically doesn't require a stress test.
My Future Mortgage pre-qualifies you with partner lenders before your renewal date so you know exactly what you qualify for.