Reverse Mortgages in Toronto for Homeowners 55+

Why Toronto homeowners look at a reverse mortgage

Many Toronto owners bought decades ago and now have a home worth far more than they paid, but live on pensions, CPP and OAS. Property taxes, repairs and everyday costs keep going up while the income doesn't. A reverse mortgage is one way to use that equity without a monthly payment.

Moving isn't cheap here either. If you sell and buy a smaller place in the city, you pay Ontario's land transfer tax and the City of Toronto's municipal land transfer tax on the new home, on top of realtor commission, legal fees and moving costs. Since April 1, 2026, Toronto also charges higher graduated municipal land transfer tax rates on high-value homes, For many people, staying put and using some equity costs less than a move, and for others downsizing is still the better answer. We'll lay out both.

Check Toronto's property tax help for seniors first

If property tax is the main pressure, the City of Toronto may help before you borrow anything. It runs a Property Tax Increase Deferral program and a Property Tax Increase Cancellation program for low-income seniors. For 2026, the City's rules include:

• combined household income of $62,000 or less (all owners living in the home, plus spouses)
• age 65 or older, or 60 to 64 and receiving the Guaranteed Income Supplement or an allowance under the Old Age Security Act (the deferral program also accepts owners 50 or older receiving a registered pension)
• for the cancellation program, a residential assessment below $975,000
• you've owned and lived in the home as your principal residence for at least a year, with no property taxes owing from prior years

Both programs cover the year's tax increase, not your whole tax bill, and you must reapply every year. The 2026 deadline was November 2, 2026. See the details on the City of Toronto's Property Tax, Water & Solid Waste Relief page.

If the City program is enough, we'll tell you. A reverse mortgage usually makes more sense when you need more than tax relief: paying off a mortgage or HELOC, home care, renovations, or helping family.

Houses vs condos: how lenders look at your Toronto home

Detached homes, semis and freehold townhouses are what reverse mortgage lenders see most, and they usually have the most options. Condos can qualify too, but each lender has its own rules for condo units and buildings, so the choice of lender matters more. We check those rules before you pay for an appraisal.

Whatever the home, you keep paying property taxes, home insurance and (for a condo) your condo fees, and keep the home in good repair. That's part of every reverse mortgage.

How much you could get, and what it costs

Most reverse mortgages in Canada go up to about 55% of your home's appraised value, depending on your age, the home and the lender. Costs include a higher interest rate than a regular mortgage, an appraisal, set-up and legal fees. Our reverse mortgage guide explains how it all works.

In Ontario, you must get independent legal advice from your own lawyer before a reverse mortgage can be arranged (O. Reg. 188/08, s. 29). It protects you, and family members are welcome to join.

A Toronto example (illustrative)

Example only, not a specific client: a widowed homeowner, 74, owns a semi-detached house in the east end, bought in the 1980s, with no mortgage. Her income is CPP, OAS and a small pension, and the roof needs replacing. We'd first check whether she qualifies for the City's tax deferral, then compare a HELOC (lower cost, but a monthly payment she may not want) with a reverse mortgage (no payment, but the balance grows), with her daughter on the call.

Meet us in Toronto

Our office is at 15 Gervais Dr, Suite 310 in North York, and we also meet by phone or video. We work with homeowners across Toronto, including North York. Read more about Greg Kalanjian, or see our post Reverse Mortgage in Canada for Toronto Homeowners 55+.