OAS clawback is a reduction the federal government applies to the OAS pension when net income passes a set threshold. Once net income crosses the threshold, the government starts reducing the amount of OAS.
For OAS payments received from July 2026 to June 2027, that threshold is $93,454*. If net income for 2025 is over the threshold, the reduction is triggered.
| $93,454.00 That’s the 2025 net income threshold for the July 2026–June 2027 OAS recovery period. Go above that number, and your clients lose 15 cents of OAS for every dollar above the threshold*. FYI: They lose OAS entirely at $152,062 (ages 65–74) or $157,923 (75+)*. But for those nearing that $90k threshold, there are ways to help reduce exposure to the clawback. Most of the income pushing them over is largely taxable: RRIF withdrawals, pensions, and capital gains. Reverse mortgage proceeds, because they’re a loan, are not taxable.  $93,454* in net income is where the clawback starts (2025 income, July 2026 – June 2027 period) 15%* is what they lose on every dollar above it $751.97/month is the OAS at risk (ages 65–74; or $827.17/month if they’re over 75)** Up to 59%, tax-free1 is the percentage of home value a client may be able to access with an EQ Bank Reverse Mortgage $0 is the required reverse mortgage monthly payment; proceeds aren’t taxable income, so they generally don’t affect OAS or GIS |
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“NO Clawback with a Reverse Mortgage”
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IF a Reverse Mortgage is not your best path, I will tell You.
- Get Your FREE Estimate with NO Obligation – (866) 410-4740
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- No Monthly mortgage payments – EVER
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- * Appraisal value paid in full when Reverse Mortgage is funded
Reverse Mortgage Estimate:
Protect Your Cash Flow:
For clients who are relying on OAS or are concerned about preserving more of their retirement income, this creates a valuable planning opportunity.
By understanding how taxable income affects OAS, and how home equity may provide an alternative source of funds, you can help clients explore solutions that support their goals, while potentially reducing pressure on their retirement cash flow.
Resolving Collections, Judgments & Liens
If consumer debts have escalated to collection agencies, legal actions, or liens placed against your Ontario property, traditional lenders will often refuse to refinance your home.
- How It Works: Reverse mortgage lenders (such as HomeEquity Bank, Equitable Bank, and Bloom) routinely allow loan proceeds to be disbursed directly through your lawyer to settle collections accounts, judgment debts, or registered property liens as a condition of closing.
- The Result: Collections calls stop immediately, title is cleared, and your credit rating begins to repair—all without needing to make monthly payments to repay the reverse mortgage.
Settle Canada Revenue Agency (CRA) Debts
Owing back taxes to the Canada Revenue Agency (CRA) is one of the most stressful financial burdens an Ontario retiree can face. The CRA possesses significant enforcement powers, including freezing bank accounts, garnishing pension income, or placing a requirement to pay on property title.
- How It Works: Reverse mortgage proceeds can be used to pay off income tax arrears, HST/GST debts, or corporate tax liabilities owed to the CRA in full.
- The Result: Paying off CRA arrears halts interest accumulation and legal enforcement actions. Furthermore, because reverse mortgage funds are treated as equity loan proceeds (not income), the money accessed is 100% tax-free and will not trigger further income tax or affect your OAS/GIS benefits
Late-Life Separation & Spousal Buyouts
Navigating a separation or divorce past the age of 55 presents unique financial hurdles. Dividing the family home often requires one spouse to buy out the other’s share of the equity, but fixed retirement income often makes re-qualifying for a traditional mortgage impossible.
The remaining spouse keeps the home, assumes sole title, and has no ongoing monthly mortgage payments to worry about on a single income.
How It Works: With a signed separation agreement, a reverse mortgage can be utilized as a spousal buyout tool. The partner who wishes to remain in the matrimonial home accesses tax-free equity to pay out their ex-spouse’s agreed entitlement.
Testimonials
We take pride in helping homeowners achieve financial stability and peace of mind.
“We needed funds for medical expenses and didn’t want to sell our home. Genesis Reverse Mortgages provided the perfect solution. The process was straightforward, and we felt supported every step of the way. Now, we can stay in our home and have the money we need. It’s a huge relief.”
David & Susan L.
“Genesis Reverse Mortgages exceeded our expectations. The consultation was free, and there was no pressure at all. We received a tailored plan that suited our financial situation perfectly. We’re so grateful for the extra cash flow, and we can now enjoy our retirement without financial stress.”
Alice P.
“We were initially hesitant about getting a reverse mortgage, but the team at Genesis Reverse Mortgages made the process so easy and stress-free. They explained everything in detail and answered all our questions. Now, we have the financial freedom to enjoy our retirement without worrying about money. Thank you!”
James & Linda M.
“The decision to go with a reverse mortgage has been life-changing. I was able to pay off my existing mortgage and still have extra money for home improvements and travel. The staff was professional, knowledgeable, and truly cared about my needs. I highly recommend Genesis Reverse Mortgages.”
Margaret T.
“We would like to thank you very much for all you did for us. After jumping through all the hoops and waiting for the money it was all worth it. Thank you again Rob. You excel in the job you do, and we highly recommend you to anyone including our friends.”
D and S
“Rob Munn is a Godsend. Thank you for being so patient and understanding”
G and D