Saturday, 30 August 2025
By Mortgage Outlet
Leah Zlatkin quoted in Free Press: ‘Seniors cash-crunch solution?’
“For someone who doesn’t have other income (aside from CPP and OAS), this is probably the only program (loan) that they qualify for,” says Leah Zlatkin, Toronto-based mortgage broker and expert with Mortgage Outlet.
Although reverse mortgages can be a viable solution for aging homeowners, the product faces “negative connotations” that it results in seniors losing their homes, which is not true, she adds.
Much of the negativity surrounding reverse mortgages stems from the U.S., where “loosey goosy” lending practices in the run-up to the subprime housing crisis in late 2008 did lead to American seniors losing their homes, Toodakian explains.
But Canada has long had tighter regulations, and lenders like HomeEquity are “conservative” only providing loans up to 55 per cent of a home’s value, she adds.
Rarely do borrowers qualify for loans to the maximum amount. At HomeEquity, the typical loan is less than 40 per cent of a home’s value, she says.
