Skip to main content

Reverse mortgages in Toronto

Buy a condo with a reverse mortgage in Toronto: what you bring and what it costs

You can buy a Toronto condo with a reverse mortgage paying part of the price, and you bring the rest from your house sale or savings. The condo must be your main home, and everyone on title must be 55 or older. You pay Ontario's land transfer tax and Toronto's own on top of the price.

Free · No sales pressure · Getting an estimate doesn't affect your credit

Last updated October 31, 2026

Moving boxes stacked in a bright, empty condo with big windows over Toronto rooftops

TorontoReverseMortgage.ca shows how to buy a condo with a reverse mortgage in Toronto: what the mortgage pays, what you bring, and what the move costs. The reverse mortgage is set up on the condo you buy and pays part of the price. You bring the rest, usually from your house sale.

What happens after your free estimate

You begin with the free estimate form, which shows an estimate on screen and doesn’t affect your credit. Have the condo’s address, its price and your closing date handy, because the building is checked and the timing has to match.

Richard Hopkins, Mortgage Broker, then compares every reverse mortgage lender in Canada for the purchase. His email shows how much a reverse mortgage could put toward the condo and the best deal for the purchase. Your children can be copied on every message, and questions can go by email, phone or video call.

Nothing is signed until you decide to go ahead, and you can stop at any step.

The rules for buying with a reverse mortgage

The condo must be your main home, where you live at least six months of the year. Everyone on the title must be 55 or older.

The building is reviewed as well as the unit. The lender looks at the unit’s value, the building and its condo corporation, and the location, and the four lenders don’t all see the same building the same way. Reverse mortgages on Toronto condos explains that review.

Buying before your house sells

Money to bridge the gap between buying and selling needs a firm sale. A firm sale means a signed agreement with your buyer and any conditions already cleared, so the money is certain to arrive. An offer that could still fall through is not enough.

A reverse mortgage you already have

Selling your house repays any reverse mortgage on it, and an early-repayment charge can apply in the first years. One lender’s lifetime fixed-rate product can move to a new home. The others can’t.

Toronto charges two land transfer taxes

Buying in Toronto means paying two land transfer taxes: Ontario’s and the City of Toronto’s own. Up to $2,000,000, the two use the same rates, so the City’s tax doubles the bill (Ontario; City of Toronto).

A condo apartment sold in the City of Toronto for $640,248 on average in September 2026 (TRREB Market Watch, September 2026). At that price, each tax comes to $9,280 for a buyer who doesn’t qualify as a first-time buyer, or $18,560 together. What downsizing in Toronto costs adds the commission, legal fees and movers.

An example: selling a $1,207,884 semi and buying a $640,248 condo

For example, an illustrative couple, 72 and 70, sell their Toronto semi-detached house for $1,207,884, the City of Toronto’s average semi-detached price in September 2026. They buy a condo apartment for $640,248, that month’s average condo apartment price, and pay $18,560 in land transfer taxes.

At 70, the younger spouse’s age, they could borrow up to about 52.85% of the $640,248 condo’s value, about $338,400. They take $150,000 from a reverse mortgage toward the price. The other $490,248 and the $18,560 in taxes come from the $1,207,884 sale, leaving out the commission and legal fees to keep the example simple.

As a result, $150,000 more of their house money stays in the bank. With no payments, the $150,000 would grow to about $203,900 to $206,400 in five years at the advertised 5-year fixed rates of 6.23% to 6.49%. Paying cash avoids that interest, so this fits when the money in the bank has a purpose, such as care at home or help for a child.

What it costs and how it is paid back

The advertised 5-year fixed rates at the four lenders ranged from 6.23% to 6.49%, checked October 31, 2026. One-time costs usually come to about $2,000 to $3,500, including your own lawyer for independent legal advice at about $800 to $1,200 in Ontario. The broker is free to you, because the lender pays the broker.

Interest is added to the balance, and it is charged only on the money you take. The mortgage is repaid when the condo is sold, when the last borrower moves out permanently, or when the last borrower passes away.

You or your estate never owe more than the home’s fair market value on the day the mortgage comes due, as long as taxes, insurance and upkeep are kept up. Repaying in the first few years brings an early-repayment charge, which matters if you might move again soon.

The balance grows over time, but rising prices often make up some or all of the interest, and Canadian borrowers keep about half of their home’s value on average. The Toronto reverse mortgage cost guide and alternatives to a reverse mortgage in Toronto cover the rest of the choice.

What's included when you ask for help

  • Estimates what a reverse mortgage could pay toward the price
  • Checks the condo building against all four lenders
  • Compares every reverse mortgage lender in Canada for the purchase
  • Lines up the lender's timing with your closing date
  • Explains what a firm sale means before you buy first
  • Checks whether a reverse mortgage you have now can move with you
  • The best deal for your purchase, by email
  • Recommends what fits your situation, even if that's paying cash

Related guides

Sources

Figures checked October 31, 2026.

  1. TRREB Market Watch, September 2026: City of Toronto average prices by home type (published October 6, 2026)
  2. Government of Ontario: Calculating land transfer tax
  3. City of Toronto: Municipal Land Transfer Tax rates and fees

How it works, from first question to money in your account

Seven steps. You can stop at any of them, and nothing is signed until the last two.

  1. 01

    Free estimate

    The free estimate form asks about you, your Toronto home and anything owing on it. It takes about 90 seconds and doesn't affect your credit.

  2. 02

    Every lender compared

    Richard Hopkins, Mortgage Broker, compares every reverse mortgage lender in Canada for your Toronto home. In his first email you see the most your home could provide and the lenders that suit it, and he asks how much you want.

  3. 03

    Application

    Once you've chosen an option, fill out a quick form and send a few documents. Your credit is checked once, and your application goes only to the lender you choose.

  4. 04

    Approval

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

  5. 05

    Appraisal

    A professional appraiser visits the home to confirm what it is worth.

  6. 06

    Independent legal advice

    Your own lawyer, who works for you and not the lender, goes through the mortgage with you before anything is signed.

  7. 07

    Closing

    The lender sends the money to the lawyer or title company doing the closing. They pay off your current mortgage, any other debts on the home and the costs, then deposit the remaining money into your bank account.

Frequently asked questions

Can you buy a condo to rent out with a reverse mortgage?

No. The condo must be your main home, where you live at least six months of the year. A rental property or a second home doesn't qualify with any lender.

Can a reverse mortgage bridge the gap before your house sells?

Yes. A reverse mortgage can bridge the gap once your sale is firm. A firm sale means a signed agreement with your buyer and any conditions already cleared, so the money is certain to arrive. An offer that could still fall through is not enough.

Does a reverse mortgage on your house move to the new condo?

No. Selling the house repays the reverse mortgage on it, and an early-repayment charge can apply in the first years. The exception is one lender's lifetime fixed-rate product, which can move to a new home.

Is there a government program for buying a home with a reverse mortgage in Canada?

No. Canada has no government purchase program. The American program for buying with a reverse mortgage, which starts at 62, has its own rules and numbers that don't apply here. In Canada, a purchase is arranged with one of the four reverse mortgage lenders.

Does it cost anything to have a broker compare the lenders for you?

No. You pay the broker nothing. The lender pays the broker after your mortgage funds.

A broker also reaches things you can't get by phoning lenders yourself. One of the four lenders works only through brokers, and another offers its highest amounts only through brokers. A broker can sometimes get a rate below the published one, or a lower set-up fee. Richard Hopkins, Mortgage Broker, compares every reverse mortgage lender in Canada, and arranges lines of credit and regular mortgages too, so he recommends the option that offers the best overall value for you.

Get my free estimate