3 Lenders in Canada That Approve Mortgages for Retirees on CPP and OAS Alone

Retirees in Canada can still get a mortgage using CPP and OAS alone, but the realistic path is narrow and depends on lender flexibility, low existing debt, and a meaningful down payment. The three lender types that stand out are Equitable Bank, Home Trust, and local credit unions. They are more open to pension income than many large banks, although borrowing power on pension income alone is usually modest.

For comparison tools and planning support, Ratehub can help compare mortgage rates across lenders, HomeEquity Bank CHIP explains reverse mortgages for owners age 55 and older, Equitable Bank offers alternative mortgage and reverse mortgage products, the Government of Canada pension pages show official CPP and OAS amounts, and Realtor.ca, the FCAC mortgage calculator, and Wealthsimple can help with home-price planning, affordability estimates, and retirement budgeting.

1. Equitable Bank

Equitable Bank is one of the more practical names to know because it operates in the alternative lending space and has documentation that explicitly recognizes pension income, including CPP and OAS, in its mortgage and reverse mortgage materials. Its broker-facing documents also list T4A slips confirming CPP, OAS, or other pension income as part of the paperwork used in underwriting. (equitablebank.ca)

For a retiree living on pension income alone, that matters because the lender is already set up to review this income type rather than treating it as unusual. Equitable Bank does not publish a simple public promise that every retiree on CPP and OAS alone will be approved, but it does show a structure that fits pension-based applications. In practice, approval is strongest when the file includes:

• at least a 20% down payment
• little or no other monthly debt
• a property with modest taxes and heating costs
• a clean payment history on existing credit

The income math is the main limit. The maximum CPP retirement pension at age 65 is $1,507.65 per month as of January 2026. The current maximum OAS payment for ages 65 to 74 is $751.97 per month for July to September 2026, bringing a combined maximum to about $2,259.62 per month. The average CPP retirement pension for new beneficiaries is lower, at $877.01 per month, so many retirees will be closer to $1,628.98 per month with OAS rather than the maximum figure. (canada.ca)

Using the common Canadian debt-service ceiling of 39% GDS and 44% TDS, a retiree with average CPP plus maximum OAS has room for about $635 per month in total housing cost before property tax, heating, and any condo fee are deducted. A retiree with maximum CPP plus maximum OAS has about $881 per month. Once taxes and heating are included, the mortgage payment room can shrink quickly. (ratehub.ca)

2. Home Trust

Home Trust is another lender type often considered by retirees because its public mortgage pages emphasize flexible residential mortgage solutions and a case-by-case approach to borrower circumstances. That does not equal automatic approval, but it does make Home Trust relevant for pension-only files that may not fit a standard bank template. (hometrust.ca)

Home Trust is especially useful when the retiree’s file is straightforward in some areas and weaker in others. For example, a borrower may have stable CPP and OAS income, a strong down payment, and a low loan amount, but a thinner credit file or a property in a smaller market. Alternative lenders are often more willing to price that risk rather than decline it outright.

A retiree considering Home Trust should prepare these items before speaking with a broker or lender representative:

• recent CPP and OAS statements or deposit proof
• T4A or pension tax slips
• a list of monthly debts and fixed expenses
• proof of down payment and closing funds
• property tax and heating estimates for the target home

The practical issue is still affordability. If monthly gross income is around $1,629, and housing costs cannot safely exceed about $635, then a property with $200 in monthly taxes and $150 in heating leaves only about $285 for principal and interest. That usually supports only a small mortgage balance at current rates. Even at the higher income figure of $2,259.62, the room after basic housing costs may still point to a modest mortgage rather than a large one. (canada.ca)

That is why many successful retiree files through Home Trust involve one or more of these features: a larger down payment, a lower purchase price, or an existing home with significant equity being refinanced into a smaller balance.

3. Local Credit Unions

Local credit unions are often the most flexible option for retirees on CPP and OAS alone because they can make more relationship-based lending decisions and may understand local housing costs better than a national lender. This is not a universal rule, but in many parts of Canada, a credit union can be more willing to review the full picture instead of relying only on a narrow automated model.

This matters most for retirees buying lower-priced homes in smaller communities. A local credit union may be more comfortable with a modest property value, a rural location, or a pension-only income file if the borrower has stable deposits, no major debts, and a sensible loan request.

The strongest way to approach a credit union file is to keep the request conservative:

• target a lower-priced home
• keep the mortgage amount as small as possible
• avoid carrying credit card or line-of-credit balances
• show cash left over after closing
• choose a property with manageable ongoing costs

For many retirees, the real borrowing range on CPP and OAS alone is often far below what first-time buyers expect. The exact number depends on rate, amortization, taxes, heating, and debt, but pension-only files often land in a range where the borrower needs a substantial down payment to make the purchase workable. That is the honest reason credit unions can help: they may say yes to a smaller, cleaner file that a larger lender would not prioritize.

Questions retirees often ask

One common question is whether CPP and OAS count as real income for a mortgage. Yes, they do. Canadian lenders regularly review government pension income, but they still test whether the amount is enough for the requested payment and other housing costs. Government sources confirm the current CPP and OAS payment levels, and lenders then use those figures within their own underwriting rules. (canada.ca)

A third question is whether GIS helps. GIS can raise monthly income for low-income seniors, with the current single-recipient maximum above $1,123 per month for July to September 2026, but not every lender treats GIS the same way in underwriting. Some count it fully, some partly, and some prefer more stable long-term income sources. (canada.ca)

Retirees also ask whether a reverse mortgage is a substitute for a regular mortgage. It is a different product. HomeEquity Bank and Equitable Bank both offer reverse mortgages for homeowners age 55 and older, and both state that borrowers can access up to 55% of home value in some cases. These products can remove monthly payment pressure, but interest compounds over time and reduces home equity. Equitable Bank currently lists a $995 set-up fee for its Flex Lite reverse mortgage, while HomeEquity Bank explains its reverse mortgage closing and administrative costs and shows examples using a $1,795 closing fee. (equitablebank.ca)

Finally, many retirees ask whether approval is certain with one of these lenders. It is not. Approval depends on income, debt, down payment, property costs, credit history, and the size of the mortgage request. The lender name helps, but the structure of the file matters more.

Conclusion

Retirees in Canada can pursue a mortgage on CPP and OAS alone most effectively through Equitable Bank, Home Trust, and local credit unions. The winning strategy is a small loan request, a strong down payment, low debt, and a property with manageable monthly costs. Start with the pension income math, then narrow the home price range, and only then compare lenders. That approach gives the clearest path to a mortgage that fits retirement income.