Can You Use Your Mortgage to Fund a Loved One's Care? Here's How It Works in Ontario

The short answer is yes, in many cases. Ontario homeowners who have built up equity in their home may be able to restructure their mortgage to access funds for home care costs. It's a legitimate mortgage tool, and for some families, it makes the difference between getting the care they need and making do with less.

Here's how it actually works.

What "using your mortgage" means

Your home has likely grown in value since you bought it. The difference between what it's worth today and what you still owe on your mortgage is called equity. Accessing that equity doesn't mean taking out a completely new loan. It usually means adjusting the terms of what you already have to unlock some of that value as usable cash.

Depending on your situation, this might look like:

• Refinancing your existing mortgage to a higher amount and taking the difference as a lump sum
• Setting up a home equity line of credit (HELOC) that you draw from as needed
• In some cases, a reverse mortgage, which doesn't require monthly payments

Each of these works differently, and the right one depends on your age, income, the amount of equity in the home, and how much funding you need.

Who this tends to work for

This approach is most commonly a good fit for families where:

• The home has been owned for a number of years and has built up meaningful equity
• The person needing care, or a family member, owns the home
• The goal is to fund ongoing care without selling the home or taking on high-interest debt

It's not the right fit for every situation, and a mortgage broker will tell you honestly if it isn't.

What the process actually looks like

The process is more straightforward than most people expect.

Here's what it typically involves:

1. A conversation about your situation. A mortgage broker will ask about your home, your current mortgage, what care is needed, and roughly how much funding you're looking for.
2. A review of your options. Based on your home's value, your existing mortgage balance, and your financial picture, your broker will identify which products you may qualify for and what each one would look like in practice.
3. An application, if you decide to move forward. If a product makes sense for your situation and you want to proceed, your broker will guide you through the application and work with the lender on your behalf.
4. Funding. A typical mortgage refinance in Ontario takes around four to six weeks from application to funding.

The first step, the conversation, costs nothing and comes with no obligation.

One thing worth knowing

Because a mortgage broker is required by law to act in your interest, not the lender's, you get an honest assessment of what's actually available to you. If a mortgage solution isn't the right fit, a good broker will tell you that too.

Reach out to Ken Tucker to find out what your home equity could do for your family. With 25 years of experience helping Ontario homeowners, Ken walks you through the options clearly and without pressure.
Book a free call here or call 416-988-5626.