OAS, GIS and taxes
By the ReverseGuide team · Reviewed by [licensed mortgage agent] · Updated November 4, 2026
Money from a reverse mortgage is a loan, not income. It isn't taxable, and it doesn't reduce Old Age Security or the Guaranteed Income Supplement. If you invest the money, any investment income may be taxable.
Why it isn't taxable
Loan proceeds vs income.
Old Age Security and GIS
No effect on eligibility or payments.
Investment income
Interest or growth on money you invest may be taxable.
Provincial programs
Check any provincial income-tested benefits. [Confirm by province]
Get advice
When to speak with an accountant.