# Reverse Mortgage Monthly Income Toronto (2026) | TorontoReverseMortgage.ca > Reverse mortgage monthly income in Toronto: deposits from your home's value every month, not taxed, OAS and GIS unchanged. Free estimate, no sales pressure. URL: https://torontoreversemortgage.ca/reverse-mortgage-monthly-income-toronto/ Reverse mortgages in Toronto # Reverse Mortgage Monthly Income in Toronto: How the Deposits Work Reverse mortgage monthly income in Toronto is money from your home's value, deposited into your bank account every month. You can also take one amount, or a mix of both. Interest is charged only on money you actually receive. The deposits are a loan, not income, so they aren't taxed and don't change your OAS or GIS. [Get my free estimate →](/estimate/) [Try the calculator](/tools/reverse-mortgage-calculator-toronto/) Free · No sales pressure · Getting an estimate doesn't affect your credit Last updated October 31, 2026 - ✓For homeowners 55 and older - ✓No required monthly mortgage payments - ✓The money is tax-free - ✓You keep ownership of your home - ✓You never owe more than your home is worth - ✓Your own lawyer explains it before you sign [TorontoReverseMortgage.ca](/) explains reverse mortgage monthly income in Toronto for homeowners 55 and older. A lender pays money from the home’s value into the owner’s bank account every month, and the owner keeps living in the home. The money can also come as one larger amount, or as a mix of both. People who ask about monthly income usually want to stay in their home and stop worrying about the bills. The challenge is not usually the value of the house. It is turning that value into money each month without selling. ## What happens after your free estimate You start with the free estimate form. It asks your age, your home’s value and what you still owe, then shows an estimate on screen. Getting an estimate doesn’t affect your credit. Richard Hopkins, Mortgage Broker, then compares every reverse mortgage lender in Canada for your situation. His email shows how much you could get and the best deal for your home, so you can read it twice. For monthly income, you’ll be asked what the money is for: property tax instalments, groceries, help around the house or [care at home](/paying-for-home-care-toronto/). That answer shapes the monthly amount. You never have to take the full amount you qualify for. Your children can be copied on every email and join calls by phone or video call. Nothing is signed at this stage. The whole process has seven steps, and you can stop at any of them. The one meeting normally held in person is near the end, with your own lawyer, for independent legal advice. ## One amount, monthly deposits or a mix The money can arrive in three ways. You can take one amount, have a set amount deposited every month, or take a larger first amount and then monthly deposits. Monthly deposits often start around $1,000 a month. Lenders typically ask you to take a first amount of roughly $20,000 to $25,000 when the mortgage starts. The monthly deposits follow. Interest is charged only on money that has been paid out, so each deposit starts adding interest on the day it arrives. ### Why monthly deposits often suit people who receive GIS The deposits never count as income. They don’t change your Old Age Security (OAS), your Guaranteed Income Supplement (GIS) or your Canada Pension Plan, and no tax slip is issued. Interest you earn is different. If you take a large amount and leave it in a savings account, the interest counts as income. GIS is based on your income from the previous year ([Government of Canada](https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/guaranteed-income-supplement/benefit-amount.html)), so that interest can lower next year’s GIS. Monthly deposits avoid most of that. Money that arrives each month and pays that month’s bills earns little or no interest, so there is almost nothing extra to report. ## Toronto costs that keep going up Property tax is the plainest example. The City of Toronto raised its part of the residential tax by 6.9% in 2025, a 5.4% increase plus 1.5% for the City Building Fund ([City of Toronto, February 2025](https://www.toronto.ca/news/city-of-torontos-2025-budget-now-final-prioritizes-affordability-transportation-safety-and-community-services/)). It rose another 2.2% in 2026 ([City of Toronto, February 2026](https://www.toronto.ca/news/city-of-torontos-2026-budget-now-final-focuses-on-affordability-service-stability-and-financial-sustainability/)). On the average Toronto home, assessed at $692,140, the total 2026 tax bill is $5,311, up $92 from $5,219 in 2025 ([City of Toronto budget report, February 2026](https://www.toronto.ca/legdocs/mmis/2026/cc/bgrd/backgroundfile-284368.pdf)). A reverse mortgage doesn’t remove those bills. Property taxes, home insurance and upkeep stay yours, and keeping them paid is a condition of the mortgage. Monthly deposits can pay them without a sale. Owners with lower incomes may have a City program to look at first. The City cancels or defers the yearly tax increase for eligible owners, including those 65 and older, with household income of $62,000 or less, and the deadline to apply for 2026 is November 2 ([City of Toronto](https://www.toronto.ca/services-payments/property-taxes-utilities/property-tax/property-tax-water-solid-waste-relief-and-rebate-programs/property-tax-and-utility-relief-program/)). The [Toronto property tax deferral guide](/guide/toronto-property-tax-deferral/) compares that route with a reverse mortgage. ### Example: $1,500 a month from an $861,700 Scarborough bungalow Take an illustrative widow, 75, in a mortgage-free bungalow in Wexford, in [Scarborough](/service-areas/scarborough/). The Toronto Regional Real Estate Board (TRREB) benchmark price for a detached house in that district (E04) was $861,700 in September 2026 ([TRREB Market Watch, September 2026](https://trreb.ca/wp-content/files/market-stats/market-watch/mw2609.pdf)). At 75, she could qualify for up to about 58% of the home’s value, about $498,000. She takes a first amount of $20,000, then $1,500 a month. After 10 years she has received $200,000: the $20,000 plus $1,500 a month for 120 months. At 6.49% a year, the highest advertised five-year fixed rate on October 31, 2026, her balance would be about $291,000. If the house were still worth $861,700 after those 10 years, about $571,000 of its value would still be hers, and more if prices rise. She receives GIS, and because each $1,500 pays that month’s bills, almost none of it earns interest that could lower her GIS. ## When monthly income from a reverse mortgage is the wrong fit A reverse mortgage is usually a poor fit if you plan to sell within a few years, because the one-time costs and the early-repayment charges fall on a short stay. If your income easily covers monthly payments, a home equity line of credit (HELOC) usually charges a lower rate. It does come with an income test and required monthly payments. If the only problem is the yearly tax increase, the City’s relief program may be enough. If a mortgage payment is the real strain, [paying off the mortgage with a reverse mortgage](/reverse-mortgage-to-pay-off-mortgage-toronto/) may do more than monthly deposits. The brokerage arranges lines of credit and regular mortgages too, so Richard recommends the option that offers the best overall value for you. The [guide to alternatives in Toronto](/guide/alternatives-to-reverse-mortgage-toronto/) explains each one. ## What it costs and how it is paid back The lenders’ advertised five-year fixed rates were 6.23% to 6.49% when checked on October 31, 2026. That is roughly 2 to 2.5 percentage points above regular mortgage rates. One-time costs total about $2,000 to $3,500: an appraisal (usually about $350), the lender’s set-up fee ($995 to $1,795, usually added to the mortgage) and your own lawyer for independent legal advice. The lawyer costs about $800 to $1,200 in Ontario, not the $300 to $500 that lender paperwork often shows. The [Toronto cost guide](/guide/reverse-mortgage-cost-toronto/) explains each cost. There are no required monthly mortgage payments. Interest is added to the balance and compounds twice a year, which means added interest also earns interest. Home price growth often makes up some or all of it, and Canadian borrowers keep about half of their home’s value on average. The mortgage is repaid when the home is sold, when the last borrower moves out for good, or when the last borrower dies. Under the no negative equity guarantee, you or your estate never owe more than the home’s fair market value on the day the mortgage comes due, as long as property taxes, insurance and upkeep were kept up. Repaying early brings a charge in the first years, and it shrinks over time. Some lenders let you repay up to 10% a year without one. The [Toronto reverse mortgage calculator](/tools/reverse-mortgage-calculator-toronto/) shows how a balance could change over time. ## What's included when you ask for help - ✓A free estimate on screen that doesn't affect your credit - ✓Every reverse mortgage lender in Canada compared for your situation - ✓The best deal for your home and your income plan, by email - ✓A monthly amount planned around your real bills, not the maximum - ✓A clear answer on tax, OAS and GIS before you decide anything - ✓Your children copied on every email, if you wish - ✓A free referral to an independent lawyer for your legal advice - ✓Every cost listed before you sign ## How the options compare **Three ways to take the money from a reverse mortgage** | | One amount | Monthly deposits | A mix of both | | --- | --- | --- | --- | | How it arrives | All at once, into your bank account. | A set amount every month, after a first amount. | A larger first amount, then monthly deposits. | | Interest | Charged on the whole amount from day one. | Charged on each deposit from the day it arrives. | Charged on each part from the day it arrives. | | OAS and GIS | Not affected. Interest earned on savings counts as income. | Not affected. Money spent as it arrives earns little interest. | Not affected. Interest on any savings counts as income. | | Often fits | One large cost, such as paying off a debt. | Steady monthly bills, such as taxes and groceries. | One cost now, then monthly bills. | ## Related guides - [How does Toronto's property tax deferral for seniors work?](/guide/toronto-property-tax-deferral/) - [How much does a reverse mortgage cost in Toronto?](/guide/reverse-mortgage-cost-toronto/) - [What are the alternatives to a reverse mortgage in Toronto?](/guide/alternatives-to-reverse-mortgage-toronto/) ## Sources Figures checked October 31, 2026. 1. [TRREB, Market Watch, September 2026 (MLS HPI benchmark prices, City of Toronto districts, p. 26)](https://trreb.ca/wp-content/files/market-stats/market-watch/mw2609.pdf) 2. [City of Toronto, City of Toronto's 2026 Budget now final (February 10, 2026)](https://www.toronto.ca/news/city-of-torontos-2026-budget-now-final-focuses-on-affordability-service-stability-and-financial-sustainability/) 3. [City of Toronto, City of Toronto's 2025 Budget now final (February 11, 2025)](https://www.toronto.ca/news/city-of-torontos-2025-budget-now-final-prioritizes-affordability-transportation-safety-and-community-services/) 4. [City of Toronto, Budget Implementation Including Property Tax Rates, User Fees and Related Matters, Table 5 (February 6, 2026)](https://www.toronto.ca/legdocs/mmis/2026/cc/bgrd/backgroundfile-284368.pdf) 5. [City of Toronto, Property Tax, Water and Solid Waste Relief Programs (2026 tax year)](https://www.toronto.ca/services-payments/property-taxes-utilities/property-tax/property-tax-water-solid-waste-relief-and-rebate-programs/property-tax-and-utility-relief-program/) 6. [Government of Canada, Guaranteed Income Supplement: How much you could receive](https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/guaranteed-income-supplement/benefit-amount.html) ## 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 **Is reverse mortgage monthly income taxable?** No. The monthly deposits are a loan against your home, not income. They aren't taxed, no tax slip is issued, and they don't change your Old Age Security (OAS), Guaranteed Income Supplement (GIS) or Canada Pension Plan. Interest you earn on money left in a savings account is taxable, like any other interest. **How much can a reverse mortgage pay you each month in Toronto?** It depends on your age, your home's value and how many years you want the deposits to last. Monthly deposits often start around $1,000 a month, usually after a first amount of roughly $20,000 to $25,000. Over the years, the total you can take is up to about 50.5% of your home's value at 65 and about 58% at 75. The [Toronto reverse mortgage calculator](/tools/reverse-mortgage-calculator-toronto/) shows your own numbers. **Do monthly deposits affect GIS the way a lump sum can?** No. The deposits themselves never count as income. A large amount left in a savings account earns interest, and that interest counts as income for the following year's GIS. Deposits you spend as they arrive earn little interest, which is why monthly deposits often suit people who receive GIS. **Do you still pay property tax with a reverse mortgage?** Yes. Property taxes, home insurance and upkeep stay yours, and keeping them paid is a condition of the mortgage. Some people set the monthly deposit to cover the City's tax instalments. Toronto owners with lower incomes can also ask the City to cancel or defer each year's tax increase; the [Toronto property tax deferral guide](/guide/toronto-property-tax-deferral/) explains who qualifies. **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. ## Other ways a reverse mortgage is used in Toronto [ Paying off your mortgage When a renewal no longer fits a retirement income, a reverse mortgage can pay off what you owe and end the monthly mortgage payment. Read more → ](/reverse-mortgage-to-pay-off-mortgage-toronto/)[ Paying for care at home Public home care is free if you qualify, and monthly deposits from your home's value can pay for the extra hours. Read more → ](/paying-for-home-care-toronto/)[ Renovations to stay at home A walk-in shower, grab bars or a stair lift, paid for from your home's value so you can stay where you are. Read more → ](/aging-in-place-renovations-toronto/) --- 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.