Reverse Mortgage: Independent Legal Advice (ILA)

by Allen Ehlert | September 17, 2025

A reverse mortgage is offered to Canadians 55 years of age and older and is of particular interest to homeowners who want to access a portion of their home equity for a wide variety of reasons including to fund their retirement years, purchase a second home, cottage, or rental property, to help children purchase a home, to address unexpected expenses, and much, much more. To support seniors with their financial needs and to help mitigate any financial mistreatment, it is important to ensure that anyone considering a reverse mortgage understands the reverse mortgage and can make an informed decision before proceeding with the transaction.

What is Independent Legal Advice (ILA)

Independent Legal Advice, or ILA is advice provided by an independent lawyer to ensure that the person signing the agreement fully understands its contents, including all possible consequences, as well as ensuring they are aware of any legal or financial responsibilities they are committing to. As part of this advice, the independent lawyer also confirms the person signing the agreement has the necessary capacity to do so, as well as ensuring they are not being pressured or coerced into signing. The person getting the reverse mortgage is responsible for paying the ILA fees.

The lawyer providing you with ILA will not represent the financial institution or any other interested party. The ILA is provided for your benefit to ensure you understand the legal aspects of the reverse mortgage, without any bias or prejudice.

Why is an ILA Required to Obtain a Reverse Mortgage?

An ILA must be obtained by the legal titleholder of the property and if applicable, any non-title holding spouse. An ILA is provided for your benefit to ensure you understand the terms and conditions of the reverse mortgage, are of sound mind and judgment, and are not being pressured to sign the mortgage documents.

ILA for Non-Title Holding Spouses

If applicable, your spouse is also required to obtain an ILA if they do not hold legal title to your matrimonial home because the mortgage becomes due and payable in the event the titleholder passes. A reverse mortgage could have an impact on the equity a spouse expects to receive upon the sale of their matrimonial home. An ILA will ensure that a non-title holding spouse fully understands the potential outcomes of the reverse mortgage.

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What Happens In an ILA Meeting?

The reverse mortgage documents will be delivered to the lawyer who is providing you with ILA and the lawyer will then meet you with no other person present to explain the documents before providing you with an ILA Certificate. An ILA Certificate evidences that you met with a lawyer to obtain ILA, and that the lawyer has explained to you the reverse mortgage terms and conditions and your rights and obligations.

Why Can’t I use My Closing Lawyer for ILA?

Your closing lawyer will represent you, as well as the financial institution. To ensure that you receive truly impartial advice, a lawyer with no conflicting interest in your transaction is required to provide the ILA.

What If I Don’t Have or Know a Lawyer?

Allen Ehlert will be happy to direct you to a lawyer or a list of lawyers in your area who can provide you with independent legal advice.

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Allen Ehlert

Allen Ehlert is a licensed mortgage agent. He has four university degrees, including two Masters degrees, and specializes in real estate finance, development, and investing. Allen Ehlert has decades of independent consulting experience for companies and governments, including the Ontario Real Estate Association, Deloitte, City of Toronto, Enbridge, and the Ministry of Finance.

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