Questions to ask your lawyer before a reverse mortgage
Every Canadian reverse mortgage requires independent legal advice. Ask your lawyer what triggers repayment, what the prepayment charges are each year, how renewal rates are set, what voids the no-negative-equity guarantee, what a surviving spouse must do, and every fee from set-up to discharge.
Figures as of November 1, 2026.Every Canadian reverse-mortgage lender we reviewed requires independent legal advice: a meeting with your own lawyer (a notary in Quebec) before you sign, which you pay for. HomeEquity Bank's example puts it at about $850. Use the meeting well. These 24 questions cover the money, getting out early, living with the loan, your spouse and family, and the guarantee. Print this page and take it with you.
Why the meeting matters
The lawyer's job is to make sure you understand what you're signing and that you're signing freely. It's also your best chance to get firm answers in writing. Ask the lender for the commitment letter and the full terms before the meeting so your lawyer can read them first.
The questions
The money
- What is the exact amount approved, and how was it set (age, appraisal, location, type)?
- What is the rate, is it fixed or variable, and for what term? What is the posted rate I would renew at today?
- How is interest compounded, and what will I owe after 5, 10 and 20 years with no payments?
- Which fees are deducted from my proceeds, and which do I pay separately (appraisal, legal advice)?
- If I take later or scheduled advances, what are the minimums and fees, and can the rate change?
Getting out
- What is the prepayment charge in each year, and how is it calculated (percentage or months of interest)?
- Is the charge waived or reduced on death, or if I move into long-term care?
- How much can I prepay each year without a charge?
- What would it cost to repay if I sold in year 2? In year 4?
Living with the loan
- Exactly what counts as default? What happens if I'm late with property tax or insurance?
- How long can I be away from the home (hospital, travel, a winter away) before it stops being my principal residence?
- Can I rent out a room or the home while I'm away?
- What servicing fees could be charged, and when?
My spouse and family
- Is my spouse on title and a borrower? If not, what happens to them when the loan becomes due?
- What happens when the first of us dies? When the survivor moves into care?
- How long does my estate have to repay, and can that be extended?
- Can my children repay the loan and keep the house?
The guarantee and the paperwork
- What exactly does the no-negative-equity guarantee cover and exclude? What would void it?
- Does this change my will, power of attorney or estate plan?
- Am I signing freely, without pressure from anyone, and do I understand I can walk away before closing?
What to bring
- The lender's commitment letter or offer, and the full mortgage terms.
- Your most recent property tax bill and home insurance policy.
- Any existing mortgage statement and payout figure.
- Your will and power of attorney, if you have them.
- Photo ID.
Who should come
Every borrower. A trusted family member can help with notes, but part of the meeting may be with you alone: the lawyer has to be satisfied nobody is pressuring you.
What should you bring to the meeting?
- The lender's offer or commitment letter and the full mortgage terms.
- Your latest property tax bill and home insurance policy.
- Statements for any mortgage or line of credit to be paid off.
- A printout of your comparison from this site, showing what you'd owe at 80, 85 and 90.
- Your spouse, and ideally the person who will act for your estate.
| Appraisal | $425HomeEquity Bank example |
|---|---|
| Independent legal advice | $850HomeEquity Bank example |
| HEB CHIP (lump sum) | $3,070$1,795 lender fee + appraisal + legal |
| HEB Income Advantage (monthly) | $3,770$2,495 lender fee + appraisal + legal |
| EQ Flex (monthly or lump) | $2,270$995 lender fee + appraisal + legal |
| EQ Flex Lite (lump sum) | $2,270$995 lender fee + appraisal + legal |
| EQ Flex Plus (70+, lump sum) | $2,270$995 lender fee + appraisal + legal |
| Bloom (lump sum) | $2,300lender's all-in figure |
| Home Trust EquityAccess (lump sum) | $2,270$995 lender fee + appraisal + legal |
| Range | $2,270 to $3,770 |
Open this example in the calculator →Computed by our engine with the lender terms and rules on the methodology page.Computed November 1, 2026.
What this means for you
The legal advice is a requirement, but it's also your best chance to understand the contract. Bring the questions on this page, a printout of your comparison, and your heirs if you can.
The costs guide lists every fee to ask about.
Frequently asked questions
Do I need a lawyer for a reverse mortgage in Canada?
Yes, in practice. EQ Bank lists independent legal advice as required for all its products, HomeEquity Bank lists it as a cost every borrower pays, and the FCAC notes some provinces require it.
Can the lender's lawyer give me independent legal advice?
No. Independent means your own lawyer, chosen by you, with no tie to the lender or to anyone who benefits from the loan.
Primary sources
- EQ Bank (Equitable Bank) — Reverse mortgage comparison and rates (prime 4.70% as of October 29, 2026) (effective October 29, 2026). Checked .
- EQ Bank (Equitable Bank) — Reverse mortgage FAQ. Checked .
- HomeEquity Bank — CHIP frequently asked questions. Checked .
- HomeEquity Bank — HEB Advantage rates (APR example with $850 ILA and $425 appraisal). Checked .
- Financial Consumer Agency of Canada — Reverse mortgages (effective October 15, 2025). Checked .