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
- What does downsizing in Toronto really cost?
- How much does a reverse mortgage cost in Toronto?
- What are the alternatives to a reverse mortgage in Toronto?
Sources
Figures checked October 31, 2026.