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The Reverse Mortgage Agreement is a specialized financial instrument designed for Canadian homeowners aged 55 and older who wish to access their home equity while continuing to live in their homes. This document is used when senior homeowners need to supplement their retirement income or access funds without selling their property or making regular mortgage payments. The agreement must comply with various Canadian federal and provincial regulations, including the Bank Act, provincial consumer protection laws, and specific reverse mortgage regulations. It details the loan terms, interest calculation methods, borrower obligations, and conditions for repayment, which typically occurs when the borrower moves out, sells the property, or passes away. The document includes mandatory consumer protection elements such as independent legal advice requirements and clear disclosure of all terms and costs.

1. Parties: Identifies the lender and the borrower(s), including their full legal names and addresses

2. Background: Explains the purpose of the reverse mortgage, confirms the borrower's age eligibility, and states that the property is the borrower's principal residence

3. Definitions: Defines key terms used throughout the agreement, including 'Principal Amount', 'Interest Rate', 'Property', 'Term', and 'Maturity Date'

4. Loan Amount and Interest: Details the principal amount, interest rate calculation method, and how interest accumulates over time

5. Property Details: Legal description of the mortgaged property and confirmation of clear title

6. Security: Establishes the mortgage charge on the property and its priority

7. Term and Maturity: Specifies when the loan becomes due and payable, including trigger events

8. Borrower Covenants: Outlines borrower obligations including property maintenance, insurance, and tax payments

9. Property Occupancy Requirements: Specifies requirements for the borrower to maintain the property as their principal residence

10. Insurance and Property Taxes: Details requirements for property insurance and payment of property taxes

11. Default Events: Lists circumstances that constitute default under the agreement

12. Remedies on Default: Describes the lender's rights and remedies in case of default

13. Representations and Warranties: Statements of fact by the borrower regarding their eligibility and property ownership

14. General Provisions: Standard clauses including notices, amendments, and governing law