How to Get a Reverse Mortgage in Canada: The Complete Step-by-Step Process

Getting a reverse mortgage in Canada is a structured, regulated process with built-in consumer protections at every stage. From your first conversation with a broker to receiving your funds, the typical timeline is 4 to 8 weeks. Here is exactly what happens at each step.

Step 1: Discovery Call with a Mortgage Broker

Timeline: Day 1 | Duration: 30–60 minutes

The process starts with a conversation — not an application. A broker who specializes in reverse mortgages will ask about your situation: your age, your home, your financial needs, and your goals. This call is free, confidential, and comes with no obligation.

During this call, the broker should:

• Understand why you are considering a reverse mortgage
• Discuss whether a reverse mortgage is the right fit, or whether another option (HELOC, refinance, etc.) might serve you better
• Give you a preliminary estimate of how much you could access
• Explain the three Canadian lenders and which one might suit your needs
• Answer your questions without pressure

Red flag: If a broker jumps straight to an application without discussing your situation and alternatives, find a different broker.

Step 2: Preliminary Assessment

Timeline: Days 1–3 | Duration: Broker handles this

Based on the discovery call, the broker runs preliminary numbers with one or more lenders. This is not a formal application — it is a soft assessment to determine approximate eligibility and loan amount. The broker considers:

• Your age (and the age of your spouse/partner, if applicable — the youngest borrower's age determines the LTV)
• Your property's estimated value and location
• The property type (single-family, condo, townhouse)
• Any existing mortgages or liens on the property
• Which lender offers the best combination of rate, LTV, and product features for your situation

The broker will present you with a recommendation and a preliminary offer. If you want to proceed, you move to the formal application.

Step 3: Formal Application

Timeline: Days 3–5 | Duration: 30–60 minutes

The formal application involves gathering your documents and submitting them to the chosen lender through your broker. You will need to provide:

• Government-issued photo ID for all borrowers
• Proof of property ownership (title or deed)
• Current property tax bill
• Home insurance policy
• Information about any existing mortgages or liens
• Basic income information (note: this is for documentation, not qualification — you do not need to pass an income test)

See our complete document checklist for a full list of what to prepare.

Step 4: Property Appraisal

Timeline: Days 5–15 | Duration: 1–2 hours on-site

The lender orders a professional, independent appraisal of your home. An accredited appraiser (designated AACI or CRA) will visit your property to assess its current market value. The appraisal considers:

• The property's condition, size, and features
• Recent comparable sales in your area
• The neighbourhood and local market conditions
• Any issues that could affect value (structural problems, environmental concerns, etc.)

The appraisal typically takes 1 to 2 hours on-site. The appraiser will walk through the home and take photos. You do not need to do anything special to prepare — just make the property accessible.

Cost: The appraisal fee (typically $300 to $500) is usually included in the reverse mortgage setup costs. Bloom Finance covers the appraisal cost directly.

Note: The appraisal is the most common cause of delays in the process. Scheduling depends on appraiser availability in your area, which can take longer in rural or remote locations.

Step 5: Lender Underwriting

Timeline: Days 15–21 | Duration: 3–7 business days

Once the appraisal is complete, the lender's underwriting team reviews the full application. They verify:

• The appraised value of the property
• That all borrowers meet the age requirement (55+)
• That the property type and location are eligible
• That property taxes are current
• That home insurance is in place
• That any existing mortgages or liens are accounted for in the loan calculation

This step is largely behind the scenes. Your broker will communicate with the lender on your behalf and keep you updated.

Step 6: Commitment Letter (Approval)

Timeline: Days 21–25 | Your action required

If the application is approved, the lender issues a commitment letter outlining the final terms of the reverse mortgage. This document includes:

• The approved loan amount
• The interest rate (fixed or variable, and the specific rate)
• The term length
• Setup fees and closing costs
• Advance structure (lump sum, scheduled advances, or combination)
• Prepayment terms and penalties
• All conditions and obligations

Review this document carefully. Your broker will walk you through every line item. If anything is unclear, ask — this is the time to clarify before you commit.

You sign and return the commitment letter to accept the terms.

Step 7: Independent Legal Advice (ILA)

Timeline: Days 25–32 | Duration: 30–60 minutes | Cost: ~$300

This step is mandatory and is one of the most important consumer protections in the Canadian reverse mortgage process. You must meet with an independent lawyer (or notary in Quebec) who:

• Is not connected to the lender or your mortgage broker
• Reviews the loan terms and explains them in plain language
• Ensures you understand the risks, costs, and obligations
• Confirms you are entering into the agreement voluntarily
• Signs a certificate confirming that ILA was provided

The ILA certificate is required before the loan can close. The cost (approximately $300) is typically paid by you as part of the closing costs. Some lenders include this in their setup fee.

For a detailed explanation, see our page on Independent Legal Advice.

Step 8: Legal and Title Work

Timeline: Days 28–35 | Duration: Handled by your lawyer

Your lawyer (often the same one who provided ILA, though it can be a different lawyer) handles the legal closing:

• Conducts a title search to confirm clear ownership
• Registers the reverse mortgage against the property's title
• Discharges any existing mortgages being paid off with reverse mortgage funds
• Prepares all closing documents for your signature
• Holds funds in trust pending completion

You will attend a signing appointment (in person or, in some cases, virtually) where you sign the final mortgage documents.

Step 9: Funding

Timeline: Days 35–42 | Your funds are released

Once all documents are signed, the ILA certificate is received, and the mortgage is registered on title, the lender releases the funds. Depending on your chosen advance structure:

• Lump sum: The full amount is deposited to your bank account (or your lawyer's trust account if there are debts to be paid off first)
• Scheduled advances: The first advance is deposited and future advances are set up on the agreed schedule (monthly, quarterly, etc.)
• Combination: An initial lump sum is deposited and scheduled advances begin as agreed

If existing debts are being consolidated (a mortgage being discharged, credit card debt being paid off), your lawyer will handle those payments directly from the advance before depositing the remainder to your account.

Step 10: Living with Your Reverse Mortgage

Timeline: Ongoing

Once funded, your reverse mortgage requires very little from you on an ongoing basis. Your obligations are:

• Pay your property taxes on time. This is the most important ongoing obligation. Falling behind on property taxes is the most common reason reverse mortgages run into issues.
• Maintain your home insurance. Keep your home insurance policy active and up to date.
• Keep the property in reasonable condition. You do not need to renovate, but you do need to maintain the home — no deferred maintenance that would significantly reduce the property's value.
• Live in the home as your primary residence. Reverse mortgages require the property to be your principal residence. If you move out permanently (e.g., to a long-term care facility for an extended period), the loan may become due.

You will receive periodic statements showing your loan balance. There are no monthly payments to make. You can make voluntary payments to reduce the balance if you choose to, subject to the lender's prepayment terms.

Timeline Summary

Total estimated timeline: 4 to 8 weeks from first call to funding. The most common delays are appraisal scheduling (especially in rural areas) and document gathering.

What Can Speed Up the Process

• Have your documents ready before the formal application (see our document checklist)
• Respond quickly to any requests from your broker or lawyer
• Schedule the appraisal as early as possible — this is often the bottleneck
• Book your ILA appointment in advance, before the commitment letter arrives

What Can Slow Things Down

• Rural or remote property locations (longer appraisal scheduling)
• Complex title situations (existing liens, multiple owners, estate properties)
• Missing or incomplete documents
• Properties that require condo status certificates or strata documents
• Holiday periods (fewer business days for processing)