The honest-math tool
Reverse Mortgage Calculator (your home's value against the loan)
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.
Step 1: About you and the home
Both owners must be 55 or over. CHIP bases approval on the younger spouse's age. Older qualifies for more. Bloom Finance, which lends in BC, Alberta and Ontario, uses the average age of joint borrowers instead, and Equitable Bank now uses the lower of the average age and ten years above the younger borrower, so a couple with an age gap can qualify for more at both (Bloom confirmed with the lender, September 2026; Equitable's broker notice, September 29, 2026).
Your exact figure comes from the lender. The typical range for your age is just below.
At 70, lenders typically advance 22–46% of the home's value, $264,000 to $552,000 on this home. The exact figure comes from the lender.
Step 2: 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 | $561,773 | $829,356 | $11,270 |
| Yr 10 · age 80 | $1,612,700 | $773,502 | $839,198 | $11,410 |
| Yr 15 · age 85 | $1,869,561 | $1,065,030 | $804,531 | $10,920 |
| Yr 20 · age 90 | $2,167,333 | $1,466,434 | $700,899 | $9,464 |
| Yr 25 · age 95 | $2,512,534 | $2,019,125 | $493,409 | $6,566 |
Probate on the estate's home equity, by province
On the $493,409 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 $404,500 you take now can be gifted to family tax-free today, a down payment while they need it rather than 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 $493,409 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.
Want a monthly income instead of a lump sum?
This page models one advance taken up front. If you'd rather the house paid you every month, that costs far less in compounding. See how many years it would last.
Where these numbers come from
This calculator is built on published Canadian reverse-mortgage methodology and was last checked for accuracy on October 15, 2026, with the arithmetic re-verified and every number on the page re-read on screen. Rates and lender programs change; your exact advance is confirmed in writing by the lender before you sign anything.
Glossary
Reverse mortgage glossary
- Reverse mortgage
- A loan for homeowners 55+ that advances equity as loan proceeds, which are not taxable income (your own benefit and tax position is one to confirm with your accountant). 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.
In a hurry? Answer seven quick questions and Ramin calls you with your figure. About 3 minutes, no obligation.
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