An age restricted community is just that, a complex or community that features a “You Must Be This Old To Live Here” sign.
There are both retirement communities that feature a 55+ or 65+ age requirement, and we also see adult buildings where you must be at least 18 years of age. Not all residents in the community need to meet the requirement, there is some leeway on that, which is nice. What is not so nice is financing the purchase of unit located in an age restricted property.
Because the age restriction could affect the resale demographic, lenders and insurance companies are a little less eager to lend on those kinds of properties. CMHC flat out won’t insure age restricted properties as it is against their mandate of providing unrestricted and non-discriminatory mortgage insurance products for Canadian borrowers.
The other 2 mortgage insurance companies, Genworth & Canada Guaranty, will consider applications containing age-restricted purchases on a case-by-case basis. Mortgage lenders are also a little picky when it comes to age restrictions, some don’t have a problem, others are a little more prudish and will not lend on those types of properties. Don’t be surprised if the mortgage lender is looking for the borrower to demonstrate a strong financial profile and downpayment.
Bottom line, we can still get financing on purchases involving age-restricted properties, you just have to be aware that your pool of potential lenders is a bit smaller than if you purchase a property with no minimum age requirements.
Questions, comments, or concerns?
Contact The MortgageGirls, Jackie & Martene Woodward