Ontario mortgage brokers are seeing increased complexity in files involving homeowners aged 55+.

Rising unsecured debt, equity-rich properties, and limited traditional refinancing options are creating scenarios where a reverse mortgage helps — but does not fully solve the problem.

In these situations, a second mortgage behind a reverse in Ontario can be a strategic solution.

At Tembo Financial, we work with Ontario mortgage brokers to structure second mortgages behind existing reverse mortgages when the reverse alone leaves a funding gap.

Why 55+ Mortgage Files Are Becoming More Complex

Many homeowners aged 55 and over:

• Have significant home equity
• Carry credit card balances or lines of credit
• Need funds for downsizing deposits
• Require renovation capital
• Want structured liquidity without selling

Reverse mortgages are often a strong starting point. However, brokers are increasingly seeing cases where:

• The reverse mortgage does not advance enough to clear all debts
• A small shortfall prevents full consolidation
• A purchase opportunity requires additional capital
• A refinance through traditional lenders is unavailable

This is where layering solutions becomes important.

What Is a Second Mortgage Behind a Reverse?

A second mortgage behind a reverse mortgage allows brokers to:

• Keep the reverse mortgage in first position
• Add a structured second mortgage in behind
• Address remaining funding needs
• Avoid disturbing the client’s primary reverse structure

When structured correctly, this strategy can:

• Complete debt consolidation
• Bridge equity gaps
• Provide deposit funds for a downsizing purchase
• Strengthen the client’s overall financial position

It transforms a file that “almost works” into one that closes successfully.

When Ontario Mortgage Brokers Should Consider This Strategy

A second behind a reverse may be worth exploring when:

• The reverse covers most, but not all, of required funds
• High-interest unsecured balances remain
• The client wants to preserve their existing reverse structure
• The property has sufficient remaining equity
• The file requires flexibility outside of traditional lending guidelines

It is not appropriate for every scenario. Proper structuring, realistic exit planning, and transparent discussions with clients are essential.

The Broker Advantage: Layered Solutions Build Long-Term Trust

Clients do not differentiate between product limitations and strategic structuring.

When a reverse mortgage alone does not fully resolve the situation, the broker who can present an additional structured option maintains advisory authority and protects the relationship.

Offering a second mortgage behind a reverse in Ontario can:

• Prevent lost deals
• Reduce last-minute file breakdowns
• Strengthen broker positioning as a strategic advisor
• Increase referral opportunities from satisfied 55+ clients

How Tembo Financial Supports Ontario Mortgage Brokers

Tembo Financial works directly with mortgage brokers across Ontario to structure:

• Second mortgages behind reverse mortgages
• Debt consolidation solutions
• Equity take-out strategies
• Time-sensitive funding scenarios

Our focus is speed, clarity, and practical deal structuring — so brokers can close files that might otherwise stall.

If you have a reverse mortgage file that is close to working but still has a shortfall, our team can review the scenario and determine whether a second behind reverse is viable.

Final Thoughts: Completing the Strategy

For Ontario mortgage brokers serving the 55+ market, flexibility is increasingly important.

A reverse mortgage can be a powerful foundation.
A structured second behind it can complete the solution.

If you are working on a file where the reverse is not enough, connect with Tembo Financial to explore whether a second mortgage behind a reverse is the right strategic fit.