To qualify for a reverse mortgage in Canada, you must meet specific eligibility requirements. The primary requirement is age: at least one homeowner must be 55 years or older. Additionally, the property must be your primary residence, which can include single-family homes, condominiums, or townhouses. The property should also be in good condition, although some lenders may consider properties that require minor repairs.

The value of your property plays a significant role in determining the amount of funds you can access through a reverse mortgage. Lenders typically have a maximum loan-to-value ratio, which ranges from 15% to 55% of your home’s value, depending on your age and the lender. For example, a homeowner aged 55-64 might be eligible for up to 15% of their home’s value, while those 80 and older might qualify for up to 55%. You’ll need to have a significant amount of equity in your home to qualify for a reverse mortgage.

In addition to age and property value, lenders consider other factors, such as your credit history and income. While credit score requirements may be more lenient than traditional mortgages, lenders still want to ensure you can pay property taxes and insurance. Some lenders may also consider your pension or other income sources. It’s essential to review your financial situation and discuss your options with a professional (like me) to determine if a reverse mortgage is suitable for you.