September 2017

5.12 - Mortgage Receivable

Summary of Legislation

The principal of the mortgage receivable is not included as an asset under the Ontario Disability Support Program (ODSP).

Legislative Authority

Sections 28 (1), (5) and 37 (1), (2), (3) of the ODSP Regulation

Summary of Directive

A mortgage receivable is a mortgage held by an ODSP applicant/recipient or member of the benefit unit to whom another party is making payments. The principal of the mortgage is not included as an asset.
Mortgage payments received from this asset shall be treated as income when the prescribed allowable asset limit has been reached.

Intent of Policy

To ensure that payments received from a mortgage are appropriately treated when determining income.

Application of Policy

Payments derived from a mortgage receivable are considered as income when the value of the mortgage receivable plus the benefit unit's current assets exceed the benefit unit's prescribed asset limit.
When the combined liquid assets and the balance owing on a mortgage receivable do not exceed the allowable asset limit, the mortgage payment is not treated as income in that month.

Example:

Single Disabled

Single Disabled

Asset Limit: 40,000

Asset Limit: 40,000

Client current liquid assets: 40,000

Client current liquid assets:38,000

Value of Mortgage Receivable: 3,500

Value of Mortgage Receivable: 1,500

Total Assets: 43,500

Total Assets: 39,500

Monthly income from Mortgage Receivable: 250

Monthly income from Mortgage Receivable: 250

Chargeable Income: 250

Chargeable Income: no charge

Hyperlinks Associated with this Policy Directive

Related Directives:
4.1 Definition and Treatment of Assets
5.1 Definition and Treatment of Income