Who Qualifies
Is a Reverse Mortgage Right for You?
A reverse mortgage lets homeowners 55+ convert part of their home equity into tax-free cash — with no monthly payments required. We'll cover exactly who it makes sense for and who should look at alternatives.
Age Requirement
The youngest borrower on title must be at least 55 years old. Both spouses must qualify if both are on title — the youngest determines the maximum you can borrow.
Property Requirement
Must be your primary residence. Eligible property types include detached homes, semi-detached, townhouses, and most condos. The property is appraised to determine your maximum borrowing limit.
How Much You Can Access
Up to 55% of your home's appraised value, depending on your age, property type, and location. A 75-year-old homeowner with a $900K home could access up to $400K+ — completely tax-free.
No Monthly Payments Required
Unlike a HELOC or regular mortgage, you make no monthly payments. Interest accumulates and is repaid when you sell, move, or the home transfers. You keep full ownership throughout.
5 Reverse Mortgage Myths — Busted
Myth 1: "The bank will own my home"
You retain full ownership of your home throughout the life of the reverse mortgage. The lender holds a charge on title (just like a regular mortgage) but you remain on title and can stay in your home as long as you choose.
✓ Fact: You own your home — always
Myth 2: "My estate will be left with nothing"
HomeEquity Bank's CHIP reverse mortgage guarantees you will never owe more than the fair market value of your home at time of sale. In most cases, significant equity remains for your heirs.
✓ Fact: No negative equity guarantee protects your estate
Myth 3: "It's only for people in financial trouble"
Many reverse mortgage clients are financially comfortable — they use it to supplement retirement income, eliminate a HELOC payment, fund home renovations, help adult children with a down payment, or simply enjoy retirement more fully.
✓ Fact: It's a retirement planning tool, not a last resort
Myth 4: "The interest rate is too high to make sense"
Rates are higher than conventional mortgages — but when weighed against the alternative (selling, downsizing, or taking on monthly HELOC payments), the math often favours the reverse mortgage, especially when the home continues to appreciate.
✓ Fact: Full cost comparison is what matters — we'll run the numbers live
Myth 5: "I'll have to move out soon"
The reverse mortgage becomes due only when you sell, move out permanently, or pass away. You can stay in your home indefinitely — even if your home value drops below the loan balance (the no-negative-equity guarantee covers this).
✓ Fact: You can stay in your home for as long as you want
How a Reverse Mortgage Works — Step by Step
Step 1
Free Consultation & Eligibility Check
Meet with Leo to confirm you qualify, discuss your goals, and get a preliminary estimate of how much you can access based on your age and home value.
Step 2
Home Appraisal
An independent appraiser assesses your home's current market value. This determines your maximum borrowing limit. Appraisal fee typically runs $300–$500.
Step 3
Application & Approval
Submit your application. No income verification or minimum credit score required. Approval is based primarily on your age, home value, and property location.
Step 4
Independent Legal Advice
Before signing, you must obtain independent legal advice from your own lawyer. This protects you — and ensures you fully understand what you're signing.
Step 5
Funds Released
Receive your funds as a lump sum, regular monthly deposits, or a combination. Money is completely tax-free and doesn't affect your OAS or GIS benefits.
Alternatives We'll Compare Side-by-Side
A reverse mortgage isn't the right answer for everyone. In this webinar, Leo will run a live comparison of all the main options so you can make an informed decision.
HELOC
Lower rate, but requires monthly interest payments and income to qualify. Can be called by the bank.
Downsizing
Unlocks full equity but means leaving your home. High transaction costs (agent, land transfer, legal, moving).
Refinance
Requires income to qualify and creates monthly payments. Often not available for retired homeowners on fixed income.
Reverse Mortgage
No monthly payments, no income requirements, stay in your home. Higher rate is the trade-off.
Leo Falkovsky, CMP
Mortgage Broker · Smith Manoeuvre Certified Professional (SMCP) · Reverse Mortgage Specialist · Barrie, ON
Reverse Mortgage Specialist
Smith Manoeuvre Certified
CMP Designated
FSRA Licensed
Leo is an Ontario mortgage broker and reverse mortgage specialist who has helped hundreds of homeowners 55+ understand and access their home equity. He approaches every conversation with full transparency — running the real numbers on reverse mortgages versus the alternatives so you can make a confident, informed decision. No pressure. Just clarity.
