# Reverse mortgage process in Toronto: 7 steps | TorontoReverseMortgage.ca

> The reverse mortgage process in Toronto in seven steps, with an illustrative Scarborough couple, from estimate to closing. Free estimate, no sales pressure.

URL: https://torontoreversemortgage.ca/blog/toronto-reverse-mortgage-start-to-finish/

Start to finish

# The reverse mortgage process in Toronto: an illustrative example

An illustrative couple in a Scarborough bungalow goes through all seven steps, from the free estimate to the day the money is deposited in their bank account.

Published September 18, 2026 · Updated October 31, 2026 · Dominion Lending Centres Homestead Financial

[TorontoReverseMortgage.ca](/) walks through the reverse mortgage process in Toronto with an illustrative example, from the first estimate to the day the money is deposited. The couple below is a composite made up to show the steps. They are not real clients.

A reverse mortgage has seven steps. Nothing is signed until the application, and you can stop at any step.

## The example: a couple in a Scarborough bungalow

In this illustration, a couple aged 70 and 74 own a brick bungalow in Wexford, in [Scarborough](/service-areas/scarborough/). They still owe $80,000 on their mortgage and want to stop the monthly payments. Their adult children want to see every step.

TRREB’s benchmark price for a detached house in their district, E04, which includes Wexford-Maryvale, was $861,700 in September 2026 ([TRREB Market Watch, September 2026](https://trreb.ca/wp-content/files/market-stats/market-watch/mw2609.pdf)).

## The seven steps, one at a time

### Step 1: The free estimate

The couple fills in the free estimate form. It takes about 90 seconds and doesn’t affect their credit. At 70, the younger spouse’s age, they could borrow up to about 53% of the home’s value: about $455,000 on $861,700. Some lenders use a combined age for couples instead.

### Step 2: Every lender compared

Richard Hopkins, Mortgage Broker, compares every reverse mortgage lender in Canada for their bungalow. In his first email, with their children copied, they see the most the bungalow could provide and the lenders that suit it, and he asks how much they want. Questions are answered by email, phone or video call, and a three-way call can include a son or daughter.

They don’t need the full $455,000. They decide on $150,000: that pays off the $80,000 mortgage and leaves about $70,000, before one-time costs. Interest is charged only on the money they take. The broker costs the couple nothing, because the lender pays him after the mortgage funds.

### Step 3: The application

When they’ve picked a lender, the paperwork is short: two pieces of ID for each of them (a driver’s licence and a passport are ideal), the latest mortgage statement and the property tax bill. Their credit is checked once, at this step, and the application goes only to the lender they chose.

### Step 4: Approval

The lender usually sends its mortgage commitment letter within a day or two.

### Step 5: The appraisal

A professional appraiser visits the bungalow to confirm its value. Depending on the lender, the appraisal is ordered by the lender or by the broker. It usually costs about $350, and it’s often the one cost paid up front.

In this example, the appraisal comes in at $861,700, the same as the district benchmark, so the $150,000 they asked for is well within reach.

### Step 6: Independent legal advice, in person

The couple meets their own lawyer for independent legal advice. This lawyer acts only for them and explains the mortgage from the legal side. Lenders generally want this meeting held in person at the lawyer’s office, and it’s usually one appointment, often under an hour.

In Ontario, independent legal advice costs about $800 to $1,200, not the $300 to $500 that lender paperwork often shows. The mortgage can’t close without the lawyer’s signed certificate ([independent legal advice for a Toronto reverse mortgage](/guide/independent-legal-advice-reverse-mortgage-toronto/)).

### Step 7: Closing

The lender sends the money to the lawyer or title company doing the closing. They pay off the couple’s $80,000 mortgage and the costs, then deposit the remaining money into the couple’s bank account, to use as they please.

## The one-time costs in this example

| Cost | Typical amount | How it’s paid |
| --- | --- | --- |
| Appraisal | Usually about $350 | Often up front |
| Independent legal advice | $800 to $1,200 | Billed by their own lawyer |
| Lender set-up fee | Typically $995 to $1,795 | Built into the mortgage |
| Discharge fee on the old mortgage | Usually $300 to $400 | Charged by the old lender |
| Broker | $0 | Paid by the lender |

In total, one-time costs usually come to about $2,000 to $3,500. The full list is in [what a reverse mortgage costs in Toronto](/guide/reverse-mortgage-cost-toronto/).

## After closing: what the couple keeps doing

The couple keeps living in the bungalow as their home. They keep paying the property taxes, keep the home insured and keep up with repairs. There are no required monthly mortgage payments.

Interest is added to the balance instead. At the advertised 5-year fixed rates of 6.23% to 6.49%, checked October 31, 2026, $150,000 would grow to about $203,900 to $206,400 after five years with no payments. Home price growth often offsets some or all of the interest, and Canadian borrowers keep about half their equity on average.

They’ll never owe more than the home’s fair market value on the day the mortgage comes due, as long as they keep up the taxes, insurance and upkeep. The mortgage becomes due when the home is sold, the last borrower moves out permanently, or the last borrower passes away. When the first spouse dies, nothing changes for the other.

The [Toronto reverse mortgage calculator](/tools/reverse-mortgage-calculator-toronto/) shows the numbers for your own age and home, and a [printable reverse mortgage checklist](/resources/) lists the papers to gather and the questions to ask before you sign.

## Read next

-   [What does independent legal advice for a reverse mortgage cost in Toronto?](/guide/independent-legal-advice-reverse-mortgage-toronto/)
-   [How much does a reverse mortgage cost in Toronto?](/guide/reverse-mortgage-cost-toronto/)
-   [How much can a 70-year-old borrow with a reverse mortgage in Toronto?](/guide/how-much-can-a-70-year-old-borrow-toronto/)
-   [What are the alternatives to a reverse mortgage in Toronto?](/guide/alternatives-to-reverse-mortgage-toronto/)

## Sources

1.  [Toronto Regional Real Estate Board (TRREB), Market Watch, September 2026 (district E04 detached benchmark)](https://trreb.ca/wp-content/files/market-stats/market-watch/mw2609.pdf)
2.  [TRREB Community Housing Market Report, Toronto East, Q4 2019 (communities in district E04)](https://trreb.ca/wp-content/files/market-stats/community-reports/2019/Q4/Toronto/TorontoEastQ42019.pdf)

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Free reverse mortgage estimate (no sales pressure): https://torontoreversemortgage.ca/estimate/

Operated by Dominion Lending Centres Homestead Financial, a mortgage brokerage licensed by the Financial Services Regulatory Authority of Ontario, brokerage licence #11711. Independently Owned and Operated. TorontoReverseMortgage.ca is a website of Dominion Lending Centres Homestead Financial, not a separate brokerage. Richard Hopkins, Mortgage Broker, licence M16000896.