How Does a Reverse Mortgage Affect My OAS and CPP Benefits?

How Does a Reverse Mortgage Affect My OAS and CPP Benefits?

One of the biggest concerns for retirees considering a reverse mortgage is whether it will impact their government benefits, such as Old Age Security (OAS) and the Canada Pension Plan (CPP). The good news is that a reverse mortgage does not affect these benefits.

The funds you receive from a reverse mortgage are considered a loan, not income. This means they are not subject to income tax and won’t be counted as income when determining your eligibility for income-based government programs like OAS and CPP. As a result, you can continue to receive your full government benefits while still accessing the equity in your home.

By taking out a reverse mortgage, you gain financial flexibility without the risk of reducing your government benefits. This makes it an appealing option for retirees who need extra cash flow but want to ensure they keep their entitlements intact.

Book a free consultation with our team, and let us answer all your questions.