How Much Can You Borrow With a Reverse Mortgage in Ontario?

The amount you can borrow with a reverse mortgage depends on three primary factors: your age, your home's value, and the lender you choose. Understanding these factors helps you plan confidently.

This guide walks you through the calculation, with real examples for different Ontario home prices.

The Three Key Factors

1. Loan-to-Value (LTV) Limit

LTV is the percentage of your home's value you can borrow. In Canada, reverse mortgage LTV limits are conservative (compared to traditional mortgages).

Lender	Maximum LTV	Location
HomeEquity Bank (CHIP)	55%	All Ontario
Equitable Bank	59% (major urban centres), 55% (other areas)	Toronto, Ottawa, major cities
Bloom Financial	55%	Ontario, BC, Alberta
Home Trust	55%	Ontario, BC (new lender, Oct 2025)

Example: If your home is worth $600,000 and the LTV limit is 55%:

• Maximum you can borrow = $600,000 × 55% = $330,000

2. Age Factor

Younger borrowers qualify for less because the lender must carry the loan for potentially longer. Older borrowers can access more because the loan period is shorter.

Your Age	CHIP Access	Equitable Bank Access
55–59	~40–45% LTV	~45–50% LTV
60–64	~45–50% LTV	~50–55% LTV
65–69	~50–55% LTV	~55–59% LTV
70–74	~52–56% LTV	~57–59% LTV
75+	~54–56% LTV	~58–59% LTV

These are approximate ranges; your actual qualification depends on the lender's underwriting.

3. Home Equity Position

You cannot borrow against equity that's already claimed by another lender.

Example: Home worth $600,000, with an existing mortgage of $200,000.

• Available equity: $400,000
• Maximum you can borrow (at 55% LTV of total home value): $330,000
• But you have only $400,000 available after the existing mortgage
• Your borrowing limit: $330,000 (limited by LTV, not by remaining equity in this case)

Another example: Home worth $400,000, existing mortgage of $300,000.

• Available equity: $100,000
• Maximum you can borrow (at 55% LTV): $220,000
• But you only have $100,000 available
• Your borrowing limit: $100,000 (limited by available equity)

Real Borrowing Capacity Examples

Example 1: Home Worth $500,000, Age 70, Paid-Off Home

Your situation:

• Home value: $500,000
• Your age: 70
• Existing mortgage: $0 (paid off)
• Location: Toronto

Using Equitable Bank (higher LTV):

• LTV available at age 70: ~57% in Toronto
• Maximum = $500,000 × 57% = $285,000

Using CHIP:

• LTV available at age 70: ~54%
• Maximum = $500,000 × 54% = $270,000

You can borrow: $270,000–$285,000 depending on the lender

Example 2: Home Worth $1,000,000, Age 65, $150,000 Mortgage Remaining

Your situation:

• Home value: $1,000,000
• Your age: 65
• Existing mortgage: $150,000
• Location: Ottawa (major urban centre)

Using Equitable Bank:

• LTV available at age 65: ~55% in Ottawa
• Maximum = $1,000,000 × 55% = $550,000
• Less existing mortgage: $550,000 − $150,000 = $400,000 available

Using CHIP:

• LTV available at age 65: ~50%
• Maximum = $1,000,000 × 50% = $500,000
• Less existing mortgage: $500,000 − $150,000 = $350,000 available

You can borrow: $350,000–$400,000

Example 3: Home Worth $300,000, Age 58, Paid-Off Home

Your situation:

• Home value: $300,000
• Your age: 58
• Existing mortgage: $0
• Location: Rural Ontario

Using CHIP:

• LTV available at age 58: ~43%
• Maximum = $300,000 × 43% = $129,000

Using Equitable Bank:

• LTV available at age 58: ~48% (rural Ontario doesn't get the higher urban LTV)
• Maximum = $300,000 × 48% = $144,000

You can borrow: $129,000–$144,000

What Affects the Exact Amount?

Property Type

Property	Affects Amount?
Single-family detached home	No (standard LTV applies)
Townhouse	Possibly (lower LTV, e.g., 50% instead of 55%)
Condo	Possibly (lower LTV, or additional requirements)
Rural property	Yes (lower LTV in some areas)
Cottage or recreational property	Often NOT eligible (must be primary residence)

Home Condition

• If major repairs are needed, the lender may require them completed before funding
• A full appraisal is conducted; significant deferred maintenance can reduce the appraised value

Title Issues

• If the property has liens, caveats, or shared ownership claims, the lender must resolve these before funding
• This can delay or prevent borrowing against full equity

The Borrowing Formula Simplified

Maximum Reverse Mortgage =
(Home Value × Lender's LTV%) − Existing Mortgage Balance

Step-by-step:

1. Get your home appraised (or estimate value)
2. Determine your age and which lender offers the best terms
3. Find the LTV available at your age
4. Multiply: Home Value × LTV% = gross borrowing capacity
5. Subtract any existing mortgages
6. The result is your maximum reverse mortgage amount

Getting a Precise Quote

To know exactly how much you can borrow:

1. Contact a licensed reverse mortgage broker (like Rick Sekhon) — no obligation
2. Provide: Age, home location, approximate home value, any existing mortgage balance
3. Lender conducts an appraisal (typically $300–$500, sometimes waived)
4. You receive a formal quote with your exact borrowing capacity
5. Review with a lawyer (required in Ontario) before committing

This entire process typically takes 3–5 business days.

Frequently Asked Questions

Q: Does my credit score affect how much I can borrow?

A: No. Reverse mortgages don't require a credit check. Your borrowing capacity depends only on age, home value, and LTV limits.

Q: Can I borrow more if I have higher income?

A: No. Income is irrelevant to reverse mortgage qualification. A retired senior with $15,000/year income and a senior with $150,000/year income can borrow the same amount (based on home value and age).

Q: What if my home value is uncertain?

A: The lender will order an appraisal. This is the official determination of your home's value for borrowing purposes.

Q: Can I borrow the maximum and then pay some back?

A: Yes. You can borrow the full approved amount and then make voluntary prepayments anytime to reduce the balance. However, prepayment penalties typically apply (check your lender).

Q: Does the amount I borrow affect OAS or GIS?

A: No. The borrowed amount is not income, so it doesn't affect government benefit calculations.

Q: If I don't use all the approved funds, do I still owe interest?

A: Depends on your lender. Some lenders charge interest only on funds you've actually drawn. Others charge on the full approved amount. Clarify this when you receive your quote.

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This article is for educational purposes only and does not constitute financial advice.

Speak to a licensed mortgage professional. Independent legal advice is required before closing a reverse mortgage in Ontario.

Ready to find out your borrowing capacity? Get your free Ontario Reverse Mortgage Guide →

Also read:

• Reverse mortgage eligibility in Ontario
• CHIP vs Equitable Bank comparison
• Interest rates for reverse mortgages in Ontario 2026

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This content is for illustrative purposes only. Rates may vary. Call Rick Sekhon for the best rates and more information.