What would a reverse mortgage cost over time?
Enter your age, the home’s value, what you would borrow and the rate you were quoted. Interest is added to the balance instead of being paid each month, so the amount owing keeps growing.
Your estimate
What the calculator assumes.
The rules. The Financial Consumer Agency of Canada (FCAC) says reverse mortgages are usually for homeowners aged 55 or older, and that you can usually borrow up to 55% of the home’s current value. Your limit depends on the age of the borrowers on title, the home and the lender. You make no regular payments. The balance comes due when you sell, move out or default, or when the last borrower dies. Source: FCAC, Reverse mortgages.
The math. This shows one lump sum with fees added to the balance, at one rate for the whole period. Interest compounds twice a year, an assumption the FCAC page does not state, so check your contract. Rates change, and a rate reset or an early repayment fee would change these figures.
Other options. The FCAC also names selling and buying a smaller home, renting, a line of credit or HELOC, a mortgage or a personal loan. See what a line of credit could offer with the HELOC calculator, and read the reverse mortgage guide. This is an estimate, not financial or legal advice.