Fortunately, reverse mortgage borrowers will be unaffected.
In consultation with OSFI, we have been informed that given the unique features of reverse mortgages, OSFI has decided that it is most appropriate to apply the 65% LTV limit at time of origination. Accordingly, our model at time of origination remains unaffected. We will, of course, comply with all aspects of B-20.
So it sounds like business as usual.
In practice, reverse mortgages are never issued with an LTV above 50% at origination. HomEquity adds that, “only a very nominal portion” ever approach 65% LTV during the life of the loan.
If you happen to be in the market for a reverse mortgage, here is a calculator where you can estimate the amount you’d qualify for.
Rob McLister, CMT