How Much Can You Get

How much am I eligible for with a Reverse Mortgage in Canada?

If you’re 55 or older and curious about how big a reverse mortgage you might get, there are five things really make an impact. Start with where your home sits on the map, then the type of property — after that it’s value, your age (and sex), and which lender you choose. Below I explain each factor plainly, with examples, and finish with a simple next step: contact a professional (like me) to get numbers that fit your exact situation.

1) Property location

Where your home is matters more than you might think. Homes in busy markets — major cities and active neighbourhoods with a long track record of home sale transaction — generally qualify for larger reverse mortgages than homes in quieter towns. Lenders take into account how easy it would be to sell the house later. The more active the market, the less risk for the lender, and the more they’re willing to advance.

2) Property type

Freehold single-family homes usually qualify for the highest amounts. Townhouses and condos often qualify for a reduced percentage (though the gap is narrowing). For very large properties, lenders typically value only the first 5–10 acres because a reverse mortgage is designed to keep you in your principal residence, not to finance acreage beyond what you live on. Lastly, mobile homes, leased-land properties, and some unusual titles are assessed on an individual basis and have a low success rate.

3) Property value

A licensed appraisal determines your home’s value for the reverse mortgage — the same basic process as with most refinances. Appraisals are commonly conservative: they may come in lower than what you think you could sell for, and they rarely boost value for cosmetic renovations. Don’t worry about the state of your interior — cleaners and throw pillows won’t impact the appraisal much unfortunately.

4) Age & sex (the most limiting factor)

Lenders use the age of the youngest borrower (or youngest spouse in most cases) to set the qualifying percentage. Age is the single most important limiter: the older you are, the larger the share of your home’s value you can access. Women sometimes qualify for slightly higher amounts than men because life expectancy statistics differ — it’s a small effect, but it’s baked into how lenders calculate risk.

Here’s a practical snapshot of qualifying ranges (percent of home value you might access):

• Age 55–59: 10%–30%

• 60–64: 12%–36%

• 65–69: 17%–41%

• 70–74: 20%–46%

• 75–79: 24%–53%

• 80–84: 31%–55%

• 85+: 37%–55%

A simpler way to see it is the midpoint rule: roughly increase the percentage by about 5% every five years. This means that a 70–74-year-old might expect around 30% of value as a midpoint; an 85+ homeowner could see around 50% as a midpoint. Exact amounts depend on the other factors listed here.

5) Lender

Not all lenders are identical. Some will lend more in certain provinces, cities, or for certain property types. Generally, lenders tend to cluster within about 5% of each other, but they do vary based on a few of these criteria so shopping around (or working with a knowledgeable broker) matters. Also, remember lenders will verify income and credit mainly to ensure you can continue to pay property taxes and insurance — it’s not as critical as it is for a traditional mortgage, but it’s still part of the process.

Final Thoughts

The five criteria that matter most in practice is property location, property type, property value, age/sex (most limiting), and the lender. Income and credit score are checked but are usually only significant if there’s concern about paying taxes and insurance.

Free Professional Consultation

If you have any unanswered questions, uncertainties or would like to go over your specific financial needs and goals, please contact me at mike.a@reversemortgageportal.ca to set up a call. As a CPA, Chartered Professional Accountant, of over 20 years, I know the importance of understanding the full picture before making recommendations. I look forward to learning more about you and your financial needs so I can help you make the best decision.

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