Is the family home counted as an asset for aged care in Ontario?


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When planning for aged care in Ontario, many families are concerned about whether the family home is considered an asset when calculating long-term care costs. Understanding how assets, including real estate, are assessed can help seniors and their families make informed financial decisions. This guide explains how the family home is treated under Ontario’s aged care system, including financial eligibility for government-funded care, exemptions, and strategies to protect assets.

1. Does the Family Home Count as an Asset for Aged Care in Ontario?

The treatment of the family home depends on whether a senior is applying for government-subsidized long-term care or private retirement homes.

Government-Funded Long-Term Care Homes

  • Primary Residence Exemption: The family home is NOT considered an asset when assessing eligibility for government-funded long-term care if the senior or their spouse still lives in it.
  • If the Home is Vacant or Sold: If the home is vacant or sold, the proceeds may be counted as liquid assets, which could affect eligibility for financial assistance.
  • Spouse or Dependent Living in the Home: If a spouse, dependent child, or eligible caregiver remains in the home, it continues to be exempt from asset testing.

Private Retirement Homes and Assisted Living

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  • Private retirement homes do not receive government subsidies, so eligibility is not affected by assets.
  • Seniors typically sell their home to fund private senior living expenses.

Key Takeaways

  • The family home is NOT considered an asset for government-funded long-term care if a spouse or dependent resides there.
  • If the home is sold, the proceeds may affect eligibility for financial aid.
  • Private retirement homes operate independently, so homeownership status does not impact acceptance.

2. Financial Assessment for Long-Term Care in Ontario

The Ontario government uses a financial assessment process to determine if a senior qualifies for subsidized long-term care.

Asset and Income Rules for Government-Funded Long-Term Care

Asset TypeConsidered for Eligibility?Notes
Family Home (Primary Residence) No Exempt if spouse or dependent lives in it
Savings & Bank Accounts Yes Includes checking, savings, and investment accounts
Pension & Retirement Income Yes CPP, OAS, GIS, private pensions included
Proceeds from Home Sale Yes If home is sold, proceeds may impact eligibility
Vehicles Depends Primary vehicle usually exempt
Life Insurance Policies Depends Only if they have cash value

Key Takeaways

  • Primary residences are exempt, but liquid assets like cash and investments are assessed.
  • If a senior sells their home, the proceeds may be considered an asset.
  • Income from pensions and government benefits is included in financial assessments.

3. Strategies to Protect the Family Home in Aged Care Planning

If keeping the family home is a priority, families can explore the following options:

1. Spouse or Family Member Retaining Ownership

  • If a spouse or dependent continues living in the home, it remains exempt from government assessments.

2. Estate Planning and Trusts

  • Transferring the home into a trust can help protect assets, but legal and tax implications should be considered.

3. Reverse Mortgages and Home Equity Lines of Credit (HELOCs)

  • Seniors who wish to stay in their homes longer can use a reverse mortgage to fund care without selling their property.

4. Selling the Home to Fund Private Senior Living

  • If moving to a private retirement home, seniors may choose to sell their home and use the proceeds to pay for care.

5. Consulting a Financial Advisor

  • Professionals can provide tax-efficient strategies to manage assets while ensuring eligibility for government support.

4. Government Assistance Programs for Long-Term Care in Ontario

Ontario offers several programs to help seniors afford long-term care and assisted living.

1. Ontario Long-Term Care Home Subsidies

  • Covers part of the cost of government-subsidized care homes.
  • Based on income rather than assets.

2. Old Age Security (OAS) and Guaranteed Income Supplement (GIS)

  • Monthly financial aid for low-income seniors.

3. Ontario Disability Support Program (ODSP)

  • Provides assistance for seniors with disabilities.

4. Veterans Affairs Canada (VAC) Benefits

  • Veterans may receive financial aid for long-term care services.

5. Ontario Seniors' Home Safety Tax Credit

  • Helps cover costs for home modifications to enable seniors to age in place.

5. Steps to Determine if Your Home Affects Aged Care Costs

Step 1: Identify the Type of Care Needed

  • Determine if you need government-funded long-term care or a private retirement home.

Step 2: Assess Who Lives in the Home

  • If a spouse or dependent lives in the home, it remains exempt from asset testing.

Step 3: Consider Future Housing Plans

  • Decide if the home will be retained, transferred, or sold.

Step 4: Review Financial Assistance Options

  • Check eligibility for OAS, GIS, ODSP, and long-term care subsidies.

Step 5: Consult a Financial or Legal Advisor

  • Get professional guidance on estate planning, tax implications, and financial strategies.

The family home is generally NOT counted as an asset when applying for government-funded long-term care in Ontario, as long as a spouse or dependent continues living in it. However, if the home is vacant or sold, the proceeds may affect financial eligibility for subsidies.

Families should carefully plan their finances, explore legal options, and consider government assistance programs to optimize their aged care funding strategy.

FAQ: 

Is my home considered an asset for long-term care in Ontario?

No, if a spouse, dependent, or caregiver still lives in the home, it remains exempt. If sold, the proceeds may be counted as an asset.

Do I have to sell my house to move into a retirement home?

No, selling your home is not required, but many seniors use home sale proceeds to fund private retirement living.

Can a senior stay in their home while receiving government-funded care?

Yes, seniors can receive home care services through Ontario’s publicly funded programs, allowing them to age in place.

How can I protect my home when applying for long-term care?

Options include spousal ownership, trusts, reverse mortgages, and estate planning. Consulting a financial advisor is recommended.

What happens if my home is sold before I enter long-term care?

The proceeds may be counted as an asset, affecting eligibility for government subsidies. Proper financial planning can help manage this impact.

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