How the Reverse Mortgage Process Works in Canada (Step-by-Step)
If you’re 55 or older and looking to access the equity in your home, a reverse mortgage can be a smart way to supplement retirement income—without selling or moving.
But how does it actually work?
At Legacy Unlocked, we walk Canadians through the reverse mortgage process every day. Whether you're just starting to explore the option or ready to move forward, here’s exactly what to expect, step by step.
Step 1: Start with a Free Estimate or Consultation
The first step is to find out how much you could qualify for. Most reverse mortgage lenders offer free tools—like an online calculator—to give you a quick estimate based on your age, home value, and location.
Better yet, you can speak directly with a licensed reverse mortgage advisor for a more accurate picture of what your options look like. No commitment required.
What You’ll Need:
Your age (and your spouse’s, if applicable)
Your home’s estimated value
Your mortgage balance (if any)
Your location
Step 2: Submit an Application
Once you’ve had your consultation and decide to move forward, the next step is to complete a formal application. This can often be done online, over the phone, or with the help of your advisor.
At this stage, your lender will review:
Your ID and proof of age
A mortgage statement (if you still owe anything)
Property tax statements
Details about your property (e.g., detached home, condo, etc.)
You are not locked in at this point—this just allows the lender to assess your eligibility and prepare your personalized loan offer.
Step 3: Home Appraisal and Property Review
Next, a certified appraiser will visit your home to determine its current fair market value. This is an important step, as the appraisal affects how much you’re eligible to borrow.
The lender may also request:
A review of property condition and zoning
Confirmation of property insurance and taxes being up to date
The appraisal ensures the home qualifies and protects you and the lender by basing the loan amount on an accurate valuation.
Step 4: Receive Your Offer and Review with a Lawyer
Once the appraisal and paperwork are complete, your lender will provide a formal loan offer. This includes details such as:
The amount you’re approved for
Interest rate and term
Payout structure (lump sum, monthly payments, or line of credit)
Any fees or legal requirements
Importantly, Canadian law requires that you receive independent legal advice (ILA) before finalizing the agreement. Your lawyer will review everything with you to ensure you fully understand the terms.
Step 5: Receive Your Funds and Enjoy the Freedom
Once the paperwork is signed and finalized, the funds will be released—typically within 2 to 5 business days. You can choose how you'd like to receive the money:
All at once (great for large expenses or debt consolidation)
Monthly installments (to supplement income)
A line of credit (draw funds as needed)
Or a combination of the above
From here, you can start using your funds however you choose—renovations, healthcare costs, travel, or simply peace of mind. You’ll continue to live in your home, and the loan only needs to be repaid when you move, sell, or pass away.
Is It Complicated?
Not at all. The reverse mortgage process in Canada is straightforward, professional, and designed with senior homeowners in mind. Most Canadians complete the process in 2–4 weeks, depending on the appraisal schedule and legal review.
Reverse mortgages are also federally regulated, so you’re protected every step of the way.
Final Thoughts
Getting a reverse mortgage might sound intimidating—but once you understand the steps, it’s surprisingly smooth. And with the right support team, you’ll never feel like you’re doing it alone.
Have questions about your next step? Legacy Unlocked is here to help. Book a free consultation and let’s talk through your options—no pressure, just clarity.
