At what age can a borrower start receiving benefits from a reverse mortgage?

In Canada, borrowers can start receiving benefits from a reverse mortgage at the age of 55. This age requirement is specifically designed to ensure that borrowers have reached a certain stage in their financial life, typically associated with retirement or near-retirement planning.

A reverse mortgage allows homeowners, particularly seniors, to access a portion of their home equity without having to sell their home or take on additional monthly payments. The funds from a reverse mortgage can be used for various purposes, such as home renovations, paying off debts, or supplementing retirement income.

By setting the eligibility age at 55, financial institutions are able to target a demographic that is likely to be more stable in terms of home ownership and financial needs. It also minimizes the risks associated with younger borrowers who may not have the financial maturity or stability that is expected at this stage in life.