Definition
In Canada, it is illegal to refuse a mortgage solely based on the borrower's age (Canadian Human Rights Act). A 70-year-old retiree can obtain a mortgage if repayment capacity is demonstrated.
Admissible income for a retired borrower includes:
- **Quebec Pension Plan (QPP)** and **Old Age Security (OAS)** pension — guaranteed lifetime income, very well regarded by lenders. - **Employer pension (defined benefit plan)** — guaranteed income, often index-linked, excellent for ratios. - **RRSP/RRIF withdrawals** — admissible but must be sustainable and documented (financial statement). - **Investment income** (dividends, rents) — admissible depending on the lender, often at 70-100% depending on regularity.
Chosen amortization period may be constrained: some lenders cap residual amortization based on estimated life expectancy, though this is rare in Canada for a primary residence.