How much can I borrow with a reverse mortgage?
In Canada you can borrow up to 55% of your home's appraised value. The older the youngest borrower is, the higher the percentage. Most people in their late 50s qualify for 10% to 20%, while borrowers over 80 can get closer to the maximum.
Estimated reverse mortgage—
Cash available to you—
This estimate uses typical lending ranges by age, adjusted for property type and location. Lenders also look at your home's condition and the local market, so your real amount may differ. Any existing mortgage or line of credit must be paid off from the reverse mortgage first.
What affects how much you can borrow
- Age. The youngest borrower's age matters most. Lenders expect older borrowers to have the loan for fewer years, so they lend a larger share.
- Home value. The lender orders an appraisal. A higher value means a higher dollar amount at the same percentage.
- Property type. Detached houses usually qualify for more than condos.
- Location. Homes in larger cities, where homes sell more easily, often qualify for more than rural properties.
- Lender. Each lender sets its own limits, which is one reason to compare.
Questions about borrowing limits
What is the maximum reverse mortgage in Canada?
Canadian lenders lend up to about 55% of a home's appraised value. Only older borrowers with higher-value homes in larger cities usually reach the top of the range.
Do I need to pay off my current mortgage first?
Yes. Any existing mortgage or home equity line of credit is paid off from the reverse mortgage when it's set up. You receive what's left.
Can I borrow more later?
Often, yes. If your home goes up in value or you get older, some lenders let you apply for more. Ask your agent how each lender handles additional advances.