Reverse Mortgages in Ontario

Ontario is the largest reverse mortgage market in Canada — and the province with the most options. All four Canadian reverse mortgage lenders operate here: HomeEquity Bank (CHIP), Equitable Bank, Bloom Finance, and Home Trust. Fraction is also available as an alternative equity-sharing product. This means Ontario borrowers benefit from the most competitive rates, the widest product selection, and a strategy unique to the province: the second mortgage behind a reverse mortgage.

Ontario is also the only province with both federal oversight (OSFI, which regulates HomeEquity Bank and Equitable Bank) and provincial oversight through the Financial Services Regulatory Authority of Ontario (FSRA), which licenses mortgage brokers and regulates lending practices in the province.

Your Four Lender Options in Ontario

HomeEquity Bank — CHIP Reverse Mortgage

CHIP is Canada's original reverse mortgage, operating since the mid-1980s. In Ontario, CHIP offers the broadest property eligibility — including rural properties, small towns, and communities that other lenders do not serve. If your property is outside the Greater Toronto Area, the Ottawa corridor, or another major urban centre, CHIP may be your only option — and that is fine, because their product lineup is extensive.

• Products: CHIP standard, CHIP Max (higher LTV), CHIP Open (6-month bridge, no prepayment penalty), Income Advantage (monthly/quarterly advances)
• Minimum home value: $200,000 ($300,000 for CHIP Max and CHIP Open)
• Setup fee: $1,795–$2,995
• Key advantage in Ontario: Accepts rural and remote properties across the province

Equitable Bank — Reverse Mortgage Flex

Equitable Bank entered the reverse mortgage space in 2018 and is broker-exclusive — you cannot access their products by walking into a bank branch or calling them directly. This is the single most powerful reason an Ontario homeowner needs a mortgage broker. Equitable consistently offers the lowest rates in the Canadian reverse mortgage market.

• Products: Flex (standard), Flex PLUS (higher LTV for borrowers 70+), Flex Lite (lower rate, lower LTV, lump sum only)
• Minimum home value: $250,000
• Setup fee: $995 (lowest in Canada)
• Key advantage in Ontario: Lowest rates and lowest setup fee; broker-exclusive means competitive pressure keeps rates sharp
• Limitation: Urban properties only — Equitable does not serve rural Ontario

Bloom Finance — Bloom Reverse Mortgage

Bloom Finance is a Canadian fintech that launched in 2019 with a focus on innovation. Their headline product is Canada's first lifetime fixed-rate reverse mortgage — the rate is locked for the entire life of the loan, not just a 5-year term. This eliminates renewal risk entirely.

• Products: Bloom standard, Bloom Lifetime Fixed-Rate, Bloom Prepaid Mastercard (on-demand equity draws via prepaid card)
• Minimum home value: $250,000
• Setup fee: ~$2,300 (but Bloom pays for the appraisal)
• Key advantage in Ontario: Lifetime fixed rate eliminates renewal risk; Prepaid Mastercard offers unique flexibility
• Limitation: Steep prepayment penalties in early years (8% in Year 1, declining 1% per year) unless you are downsizing, moving to assisted living, or passing away

FSRA Oversight: Ontario's Extra Layer of Protection

Ontario is unique in having the Financial Services Regulatory Authority (FSRA) as an additional regulatory body governing mortgage transactions. FSRA's role in the reverse mortgage context includes:

• Broker licensing and oversight. All mortgage brokers and agents in Ontario must be licensed by FSRA and adhere to conduct standards. This includes disclosure requirements, suitability obligations, and continuing education.
• Consumer complaint process. If you have a concern about a mortgage broker's conduct, FSRA provides a formal complaint process with investigation authority.
• Suitability requirements. Ontario mortgage professionals are required to assess whether a product is suitable for the client's needs and circumstances — not just whether the client qualifies.

This is in addition to the federal oversight provided by OSFI (which regulates HomeEquity Bank and Equitable Bank as federally regulated financial institutions) and the mandatory Independent Legal Advice that applies to all reverse mortgages in Canada.

The Ontario Second Mortgage Strategy

Ontario has the most developed private lending market in Canada, which enables a strategy not commonly available in other provinces: placing a private second mortgage behind a reverse mortgage to access additional equity.

How It Works

A reverse mortgage is placed as the first charge on the property. A private lender then registers a second mortgage behind it. The combined loan-to-value typically cannot exceed 75% to 80%. The reverse mortgage portion requires no monthly payments; the private second mortgage typically requires monthly interest-only payments.

Example

Who This Is For

This strategy is appropriate in specific situations only:

• Homeowners who need to access more equity than a reverse mortgage alone provides
• Borrowers with significant home equity (typically $500,000+) who have a specific, high-value need (major debt consolidation, property settlement in divorce, funding a family member's home purchase)
• Borrowers who can manage the monthly interest payments on the second mortgage

This is not a strategy for most borrowers. The private second mortgage rate is high (typically 8% to 14%), and the monthly payments create the exact cash flow obligation that a reverse mortgage is designed to avoid. It should be considered only when the amount needed exceeds what a reverse mortgage alone can provide and the borrower has the income or other resources to service the second mortgage.

Ontario Property Considerations

GTA and Ottawa Corridor

Properties in the Greater Toronto Area and the Ottawa corridor have the highest values in Ontario and qualify with all four reverse mortgage lenders. The high property values mean larger potential reverse mortgage advances. Competition among all four lenders keeps rates and fees competitive in these markets.

Smaller Cities and Towns

Properties in cities like Hamilton, London, Kingston, Windsor, Kitchener-Waterloo, Barrie, and Sudbury typically qualify with CHIP and potentially Bloom Finance. Equitable Bank's urban-only requirement means they may not serve all of these markets — your broker can confirm based on your specific property address.

Rural and Northern Ontario

If your property is in rural or northern Ontario, CHIP is likely your only option — but CHIP is specifically designed to serve these markets. HomeEquity Bank has the broadest property acceptance criteria of any Canadian reverse mortgage lender, including properties that other lenders would decline. The minimum home value is $200,000, and they accept properties in communities that other lenders consider too remote.

Condominiums

Condo eligibility depends on the specific building, condo corporation financial health, and lender requirements. In Ontario, you will need a status certificate from the condo corporation — request this early, as it can take up to 10 business days. Condos in downtown Toronto with strong financials are straightforward; condos with special assessments, reserve fund issues, or in smaller buildings may require additional review.

Ontario Land Transfer Tax

An important note for Ontario homeowners considering downsizing as an alternative to a reverse mortgage: Ontario's land transfer tax (plus the additional Municipal Land Transfer Tax in Toronto) makes downsizing particularly expensive. On a $600,000 purchase in Toronto, the combined land transfer tax is approximately $16,475. This is on top of all other transaction costs (real estate commissions, legal fees, moving costs, etc.).

This is one of the reasons downsizing is more costly in Ontario than people expect, and why a reverse mortgage — with its setup costs of $995 to $2,995 — is often more economical than selling and buying.

Getting Started in Ontario

With four lenders competing for your business, Ontario is the best province to be shopping for a reverse mortgage. The key is working with a broker who has access to all four lenders, understands the Ontario regulatory environment, and can compare products across CHIP, Equitable Bank, Bloom Finance, and Home Trust to find the best fit for your situation.