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
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