The honest-math tool
Will the house outrun the loan?
Set your numbers and watch the race between your home's value and the compounding balance — including what your estate keeps at every milestone, and what changes if you choose to pay the interest monthly. Everything here is an illustration to explore trade-offs; your exact advance comes from the lender.
About you and the home
Both owners must be 55 or over. Approval is based on the younger spouse's age — older qualifies for more.
Reverse mortgages typically advance about 35–55% of the home's value, scaling with age and location — your exact figure comes from the lender.
The assumptions
Reverse rates typically run 1.5–2.5% above a 5-year fixed — this is an illustration, not a live quote.
Left to compound (the choice most people make), the balance grows as shown. You can switch to interest payments at most lenders whenever you like.
The race is between your home growing and the balance compounding. Try 0% to see the balance alone.
Legal (about $1,500–2,500), independent legal advice (about $400–800), and the appraisal. Paid from the advance.
The race: your home's value vs. what you owe
Left to compound, the balance grows. The gap between the lines is your remaining estate equity — and thanks to the no-negative-equity guarantee, you or your estate can never owe more than the home is worth, even if the lines cross.
Year by year
| Year | Home value | Balance owed | Estate equity | Probate (BC) |
|---|---|---|---|---|
| Yr 5 · age 75 | $1,391,129 | $660,909 | $730,220 | $9,884 |
| Yr 10 · age 80 | $1,612,700 | $910,002 | $702,697 | $9,492 |
| Yr 15 · age 85 | $1,869,561 | $1,252,977 | $616,584 | $8,288 |
| Yr 20 · age 90 | $2,167,333 | $1,725,217 | $442,117 | $5,852 |
| Yr 25 · age 95 | $2,512,534 | $2,375,441 | $137,092 | $1,582 |
Probate on the estate's home equity — by province
On the $137,092 of equity projected at year 25. The reverse-mortgage balance reduces the estate that gets probated — and Alberta's flat fee makes probate a non-event there.
Verified 2026 schedules: BC — $0 to $25,000, then $6 per $1,000 to $50,000, then $14 per $1,000 above, plus a $200 filing fee. Alberta — a flat fee between $35 and $525 (never more). Ontario — $0 on the first $50,000, then $15 per $1,000 (1.5%). Probate applies to the whole estate, not just the home; this shows the home-equity portion.
A living inheritance
The $476,500 you take now can be gifted to family tax-free today — a down payment while they need it, not decades from now — while you keep the home and its future appreciation. The trade-off is the compounding balance: your estate is projected to retain $137,092 of equity at year 25 instead of the full $2,512,534. Whether that trade is worth it is exactly the conversation we walk through with you and, with your permission, your adult children.
Estimates, not guarantees. Actual advances depend on age, property, location and lender (products like CHIP and Equitable's Reverse Mortgage Flex); rates and home appreciation will differ from any assumption here. The no-negative-equity guarantee means you never owe more than the home's fair market value at sale. This is an illustration to explore the trade-offs — not advice, an appraisal, or an offer of credit. We always run the full alternative analysis (HELOC, refinance, downsize) before recommending a reverse mortgage.
Reverse mortgage glossary
- Reverse mortgage
- A loan for homeowners 55+ that advances tax-free equity. Payments are optional — you can make interest payments to keep the balance flat, or make none and let the interest compound. The loan is repaid when the home is sold, the owner moves out, or the last borrower passes away.
- No-negative-equity guarantee
- A guarantee (carried by both CHIP and Equitable's Reverse Mortgage Flex) that you or your estate will never owe more than the home's fair market value at the time of sale — even if the compounding balance grows above it.
- Probate / estate administration tax
- A provincial fee to validate a will and administer an estate, charged on the estate's value. BC and Ontario charge roughly 1.4–1.5% above a threshold; Alberta is a flat fee capped at $525.
- Living inheritance
- Gifting equity to family now — while you're alive to see it used — instead of leaving it in the estate. A reverse mortgage is one way to free that cash without selling and without being required to make monthly payments.
- Independent Legal Advice (ILA)
- A separate lawyer, acting only for you, who confirms you understand the reverse mortgage before it funds. Standard on reverse files in both BC and Alberta — budget a $400–$800 fee.
Like what the numbers say? Let's check them against real lenders.
Your exact advance depends on age, property, and location. Tell us your scenario and we'll bring back real figures — plus the HELOC comparison — in writing.
Prefer to learn first? Join a free live webinar.