5.12 — Mortgage receivable
September 2017
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 |
Related directives
4.1 — Definition and treatment of assets
5.1 — Definition and treatment of income