Reverse Mortgage for Condo Owners in Ontario: What You Need to Know

Yes, condo owners in Ontario can qualify for a reverse mortgage — but there are some important differences compared to detached homeowners. Condos are subject to an LTV reduction, and there are a few additional eligibility checks lenders perform.

The Condo LTV Adjustment

All four Canadian reverse mortgage lenders apply a reduction to the maximum Loan-to-Value (LTV) for condominiums. Typically, your maximum LTV is reduced by approximately 15% of the standard amount. For example, if you would qualify for 40% LTV as a detached homeowner, as a condo owner you would qualify for approximately 34% LTV.

Why the Adjustment?

Condos carry additional risks that affect lenders' security: condo corporations can go into financial distress, special assessments can reduce property values, and the market for individual condo units can be more volatile than detached homes in times of economic stress.

Condo-Specific Eligibility Requirements

• The condo corporation must be in good financial standing
• No major pending special assessments
• The unit must be owner-occupied
• Minimum appraised value of $250,000
• The building must meet lender guidelines (age, condition, reserve fund)

Which Lenders Are Best for Condo Owners?

All four lenders accept condo properties, but HomeEquity Bank (CHIP) and Equitable Bank have the most experience with condo underwriting and the most flexible guidelines. Home Trust's EquityAccess product is also available for condos in major Ontario centres.

What About Condo Fees?

Your monthly condo fees don't affect your eligibility for a reverse mortgage — there is no income requirement. However, lenders do verify that your condo fees are paid up-to-date before approving your application.