Reverse mortgages: which properties and situations don't qualify

The good news first: income and credit score generally aren't the gate

The biggest difference from a regular mortgage: approval doesn't depend on your income or your credit report. The business page touches on this — here's why: the loan is secured by home equity, not your monthly repayment ability, since there's no monthly payment to begin with.

That means retirees, people with irregular income, and people with imperfect credit can often still qualify, as long as the property and age requirements are met. This is one of the biggest differences from a regular mortgage or HELOC, and it's why a lot of people who assume they wouldn't qualify actually do.

Age: every co-owner on title and on the loan needs to meet it

Both major lenders require every borrower to be 55 or older — it's not enough for one person in the household to meet the age requirement. Every co-owner on title and on the loan needs to.

For a couple applying together, the qualifying age is generally based on the younger co-borrower. If that person hasn't turned 55 yet, the application doesn't qualify right now, regardless of the other borrower's age.

The property itself: what's usually fine, and what usually isn't

Usually fine: single-family detached homes, semi-detached homes, townhouses/row houses, and condos.

Usually not: a second home or vacation property — if it isn't your primary residence, it doesn't qualify — and rental or investment properties. At least one major lender explicitly excludes manufactured/mobile homes.

Co-ops and leasehold-tenure properties aren't explicitly addressed by either lender's official materials — that's not the same as "definitely excluded," it just means there's no clear published answer. If your property falls into one of these categories, confirm directly with the lender before assuming either way.

Home value and location: there are thresholds, and the two lenders don't line up exactly

Both lenders share the same minimum home value: $250,000.

The maximum amount you can access differs: up to roughly 55% of appraised value with CHIP, up to roughly 59% with Equitable Bank. What you'd actually qualify for still depends on age, location, and property type together — as the business page notes, there's no single fixed number.

Location matters too, and differently for each lender: HomeEquity Bank/CHIP operates across Canada, urban and rural (rural properties may qualify for a somewhat lower percentage). Equitable Bank currently only serves major urban centres in BC, Alberta, Ontario, and Quebec. If your property is somewhere more remote, which lender you can even use may come down to this.

Two more basic requirements — and they apply after funding too

The property must be your primary residence, occupied at least 6 months of the year.

It needs to be kept in reasonable condition, and property taxes need to stay current. These aren't just application requirements — they need to keep being met after the reverse mortgage funds, or it can constitute a default.

An existing mortgage or HELOC on the property doesn't block your application, but it needs to be paid off using the reverse mortgage proceeds — the business page covers this too.

Common questions