Using a Reverse Mortgage While Waiting for Long-Term Care in Ontario

Ontario's long-term care system has a wait list problem — and the people caught in the middle are seniors and their families. If you or a loved one has been approved for a long-term care (LTC) bed but told the wait could be months or even years, you already know the stress. The care is needed now, but the publicly funded bed is not available yet. In the meantime, someone has to pay for the care that bridges the gap.

This article is for educational purposes only and does not constitute financial advice.

For Ontario homeowners aged 55 and older, a reverse mortgage is one way to fund private home care, assisted living, or other interim care arrangements while waiting for a long-term care placement — without selling the home or taking on monthly debt payments.

The Reality of Ontario's Long-Term Care Wait Lists

Ontario's long-term care wait lists have been a persistent challenge for decades, and the situation has not improved substantially despite government commitments to build new beds. Here is what the current landscape looks like.

Wait List Metric	Current Reality
Average wait time (Ontario-wide)	150+ days
Wait time in high-demand areas (Toronto, Ottawa, Hamilton)	200–400+ days
Wait time for preferred home or location	Often 2–5 years
Number of Ontarians on wait lists	40,000+
Percentage of wait-listed seniors receiving some form of interim care	Varies widely by LHIN/Ontario Health region

These are not abstract numbers. Behind each statistic is a senior who needs daily assistance — help with bathing, medication management, meal preparation, mobility, or cognitive support — and a family trying to piece together a care plan with limited resources.

The wait list process in Ontario is managed through Ontario Health (formerly the Local Health Integration Networks or LHINs). Once a senior is assessed and approved for long-term care, they are placed on a wait list for their chosen home or homes. During the wait, the senior must arrange their own care — either at home, in a retirement residence, or through other private arrangements.

What Care Costs During the Wait

The financial burden of the wait period is substantial. Here is what Ontario families are typically paying for interim care in 2026.

Private Home Care

Service	Approximate Cost (2026)
Personal support worker (PSW), per hour	$28–$40
Registered nurse (RN) visit, per hour	$55–$85
Live-in caregiver, per day	$280–$380
8 hours/day PSW support, 7 days/week	$7,800–$11,200/month
24-hour care at home	$16,800–$22,400/month

Ontario's publicly funded home care through Ontario Health provides some hours of PSW support, but the allocation is often insufficient for seniors with complex needs. Families frequently top up with private care to fill the gaps.

Retirement Residences and Assisted Living

Accommodation Type	Approximate Monthly Cost (2026)
Basic retirement residence (shared room)	$3,500–$5,000
Private suite, retirement residence	$4,500–$7,500
Assisted living with memory care	$6,000–$10,000+
Respite or short-term stay	$100–$250/day

For a senior waiting 6 to 12 months for a long-term care bed, private care costs can easily reach $30,000 to $100,000 or more — depending on the level of care required.

How a Reverse Mortgage Can Bridge the Gap

A reverse mortgage allows Ontario homeowners aged 55 and older to access a portion of their home equity as tax-free funds — without making monthly mortgage payments and without selling their home. The loan is repaid when the homeowner sells, moves permanently, or passes away.

For seniors on a long-term care wait list, this creates a practical funding option for interim care:

1. Access a lump sum. Receive a one-time payment to cover immediate care costs, hire a private caregiver, or pay the deposit on a retirement residence.
2. Set up scheduled advances. Some lenders allow you to draw funds over time rather than all at once, which can align with ongoing monthly care costs.
3. No monthly payments. Unlike a HELOC or traditional mortgage, a reverse mortgage does not require monthly payments. This is critical for seniors who are already on fixed incomes and cannot absorb a new monthly obligation.
4. Stay in your home. If the plan is to remain at home with private care support until a LTC bed opens, the reverse mortgage allows you to fund that care while continuing to live in the home that secures the loan.

All four Canadian reverse mortgage lenders — HomeEquity Bank (CHIP), Equitable Bank, Bloom Financial, and Home Trust — offer products that can be used for this purpose. There are no restrictions on how reverse mortgage funds are spent.

Example: Funding 12 Months of Home Care

Detail	Amount
Home value (Ottawa suburban bungalow)	$650,000
Borrower age	78
Approximate reverse mortgage amount	$260,000–$325,000
Monthly private home care cost (8 hrs/day PSW)	$9,000
12-month care cost	$108,000
Remaining equity after reverse mortgage and care costs	$325,000–$542,000

In this scenario, the homeowner accesses enough to cover a full year of substantial home care, with significant equity remaining. The funds can also cover medication costs, medical equipment, home modifications (grab bars, ramp, stair lift), and other expenses that arise during the wait.

Rick Sekhon can walk you through the numbers based on your specific home value, age, and anticipated care costs. Rick works with families across Ontario who are navigating the gap between needing care and receiving a long-term care placement.

What Happens When the LTC Bed Becomes Available

This is the question families ask most often: if I take out a reverse mortgage to fund interim care, what happens when the long-term care bed finally opens?

The answer depends on your living arrangement at the time.

Scenario 1: You Were Living at Home with Private Care

If you have been living in your home with private home care support, moving permanently to a long-term care facility triggers repayment of the reverse mortgage. You typically have up to 12 months to arrange repayment — usually through the sale of the home.

HomeEquity Bank (CHIP) reduces the prepayment penalty by 50% for borrowers who move to a care facility, which is a meaningful financial protection. See our detailed guide on reverse mortgages and nursing homes for the full breakdown.

Scenario 2: Your Spouse Remains in the Home

If the reverse mortgage is in both spouses' names and one spouse moves to long-term care while the other remains in the home, the reverse mortgage continues as normal. No repayment is triggered until both borrowers have permanently left the home. This is one of the most important protections in the reverse mortgage contract for couples.

Scenario 3: You Were in a Retirement Residence During the Wait

If you moved to a retirement residence temporarily while waiting for a LTC bed, the reverse mortgage may have already been triggered for repayment — since you would have moved out of your primary residence. This is an important timing consideration. If you plan to move to an interim retirement residence, discuss the repayment implications with your lender before making the move.

Situation	Reverse Mortgage Status
Living at home with private care, then move to LTC	Repayment triggered upon permanent move; up to 12 months to repay
One spouse moves to LTC, other stays home	Mortgage continues; no repayment triggered
Both spouses move to retirement residence while waiting	May trigger repayment (consult lender)
Temporary hospital or rehab stay	No repayment triggered

Important Drawbacks and Considerations

A reverse mortgage can be a practical solution for funding the LTC wait period, but it is not without costs and trade-offs.

• Compound interest reduces your estate. Every month the reverse mortgage is outstanding, interest accrues and is added to the loan balance. If the wait period is long and you have drawn a large amount, the compounding effect can meaningfully reduce the equity remaining for your estate. This is the most significant financial consideration.
• You may not need the full amount. It can be tempting to take the maximum available, but borrowing only what you need for the anticipated wait period minimizes interest costs. If you receive a LTC bed sooner than expected, you will have borrowed — and paid interest on — more than necessary.
• Retirement residence timing matters. If your interim plan involves moving out of your home to a retirement residence, this could trigger repayment obligations. Plan the sequence carefully with your lender and with Rick Sekhon to avoid an unexpected repayment demand.
• Long-term care co-payments still apply. Once you are admitted to a long-term care home, Ontario charges a co-payment based on accommodation type. Basic accommodation costs approximately $1,950 per month (2026), while preferred and private rooms cost more. You will still need income or savings to cover these costs after the reverse mortgage has served its purpose.
• Independent legal advice is mandatory. Before closing a reverse mortgage, you must receive independent legal advice from a lawyer who is not connected to the lender. This is a regulatory requirement designed to protect you.

Coordinating with Ontario's Home and Community Care System

Before committing to a reverse mortgage to fund private care, make sure you are accessing all publicly funded supports available to you. Ontario offers several programs that can reduce the amount of private care you need to purchase:

• Ontario Health atHome (formerly LHIN home care) provides publicly funded PSW hours, nursing visits, and therapy services at no cost. The allocation depends on your assessed needs.
• Veterans Affairs Canada provides additional home care funding for eligible veterans.
• Ontario Seniors' Dental Care Program, Assistive Devices Program, and other provincial supports can offset specific costs.
• Ontario Drug Benefit (ODB) covers most prescription medications for seniors aged 65+.

A reverse mortgage should supplement — not replace — publicly funded care. Rick Sekhon often works alongside families' care coordinators to ensure the financial plan aligns with the care plan.

For a broader look at combining government programs with reverse mortgage funding, see Ontario seniors' programs and reverse mortgages combined.

FAQ

Can I use a reverse mortgage specifically to pay for home care while waiting for long-term care? Yes. There are no restrictions on how reverse mortgage funds are used. You can direct the funds toward private PSW care, nursing support, medical equipment, retirement residence fees, or any other care-related expense during the wait period.

What if I get a long-term care bed sooner than expected? You would repay the reverse mortgage when you permanently leave your home — typically through the sale of the property. You have up to 12 months to arrange repayment. If you borrowed more than you ultimately needed, you keep the unused portion but will have paid interest on the full amount drawn.

Does taking a reverse mortgage affect my eligibility for long-term care? No. Reverse mortgage proceeds are not considered income by the CRA or by Ontario's long-term care assessment process. They do not affect your placement on the wait list, your assessed care needs, or your eligibility for publicly funded home care services.

Can my family apply for a reverse mortgage on my behalf if I lack capacity? If a power of attorney for property is in place, the attorney can apply for a reverse mortgage on the homeowner's behalf. The process involves additional legal scrutiny to ensure the transaction is in the homeowner's best interest. See our guide on reverse mortgages and power of attorney.

How quickly can reverse mortgage funds be available? The typical timeline from application to funding is 3 to 6 weeks, depending on the lender and the complexity of the property. In urgent situations, some lenders can expedite the process. Rick Sekhon can advise on which lender is best positioned to move quickly for your situation. For the full timeline breakdown, see how long a reverse mortgage takes in Ontario.

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Speak to a licensed mortgage professional. Independent legal advice is required before closing a reverse mortgage in Ontario.

Get your free Ontario Reverse Mortgage Guide →

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This content is for illustrative purposes only. Rates may vary. Call Rick Sekhon for the best rates and more information.