This reverse mortgage calculator estimates how much you could borrow against your home at your age, and how quickly the balance grows when no payments are made. A reverse mortgage lets homeowners aged 55 and older borrow, usually up to 55% of the home’s appraised value, and repay when the home is sold, they move out permanently or they die. How reverse mortgages work, the providers, costs, rates and eligibility are covered in our guide to reverse mortgages in Canada, part of our guide to mortgage types and features.
The calculator uses an approximate age-based percentage (20% at age 55, rising one point a year to a maximum of 55%) and compounds the balance once a year at the rate you enter. A lender’s offer will differ: it sets the amount from its own assessment of your age, home and location.
How Much Can You Borrow With a Reverse Mortgage?
The exact amount depends on several factors:
| Factor | Impact on Borrowing Amount |
|---|---|
| Your age | Older borrowers qualify for a higher percentage |
| Spouse’s age | The younger spouse’s age is used in the calculation |
| Property location | Urban properties in stable markets qualify for more |
| Property type | Single-family homes typically qualify for more than condos |
| Property condition | Well-maintained homes receive higher appraisals |
| Current home value | Higher-value homes can access larger dollar amounts |
Reverse Mortgage Borrowing Example
| Home Value | Age 55 (~20%) | Age 65 (~30%) | Age 75 (~40%) | Age 85 (~50%) |
|---|---|---|---|---|
| $400,000 | $80,000 | $120,000 | $160,000 | $200,000 |
| $600,000 | $120,000 | $180,000 | $240,000 | $300,000 |
| $800,000 | $160,000 | $240,000 | $320,000 | $400,000 |
| $1,000,000 | $200,000 | $300,000 | $400,000 | $500,000 |
Percentages are approximate and vary by lender and individual circumstances.
You can receive the funds as a lump sum, as scheduled advances or as a combination of both.
How the Balance Grows
Because no monthly payments are made, interest compounds on the outstanding balance, so the loan grows over time and the equity left in the home shrinks.
Example: $200,000 reverse mortgage at an illustrative 7.5% with no payments.
| Year | Loan Balance |
|---|---|
| 0 | $200,000 |
| 5 | $287,000 |
| 10 | $412,000 |
| 15 | $592,000 |
| 20 | $850,000 |
Approximate figures, annual compounding at 7.5%.
Current rates are set by each lender and change with the market; see reverse mortgage rates for what drives them.
How a Reverse Mortgage Affects Your Estate
As interest compounds, the equity left for your estate falls, even when the home rises in value.
Estate Impact Example
A home worth $700,000 today, a $200,000 reverse mortgage at 7.5% and home appreciation of 3% a year:
| Year | Home Value | Loan Balance | Remaining Equity |
|---|---|---|---|
| 0 | $700,000 | $200,000 | $500,000 |
| 5 | $811,000 | $287,000 | $524,000 |
| 10 | $941,000 | $412,000 | $529,000 |
| 15 | $1,091,000 | $592,000 | $499,000 |
| 20 | $1,264,000 | $850,000 | $414,000 |
In this scenario the remaining equity peaks around year ten, when the loan starts growing by more dollars each year than the home does, and after 20 years the heirs would receive about $414,000 of equity rather than the full home value. A higher rate or flat home prices would shrink the equity faster.
HomeEquity Bank’s CHIP Reverse Mortgage includes a no-negative-equity guarantee, under which you won’t owe more than the home’s fair market value when it is sold. It is a term of the lender’s product, with conditions, rather than a rule set by law, so the wording in any contract is worth reading.
Before You Decide
The guide to reverse mortgages in Canada covers the pros and cons, who qualifies, the costs, the effect on OAS and GIS, and the alternatives, including a HELOC, downsizing and renting out part of the home. A HELOC calculator shows what borrowing the same amount with monthly payments would cost instead.
Related Calculators
- Mortgage Calculator: regular mortgage payments
- HELOC Calculator: HELOC costs
- Retirement Calculator: your overall retirement income
- OAS Calculator: Old Age Security payments
- CPP Calculator: Canada Pension Plan benefits
- Reverse Mortgages in Canada: the complete guide
Sources
The figures and rules on this page come from these sources, last checked against them on October 1, 2026. How we check facts.
- Financial Consumer Agency of Canada: Borrowing against home equity