Your equity, payments optional — see what it does to your estate.
For homeowners 55+, a reverse mortgage advances tax-free equity, and payments are optional — make interest payments if you like, or none and let the balance compound. This calculator shows the race between your home's value and the balance over 25 years under either choice, the provincial probate on your estate, and what a living inheritance actually costs. Built for BC & Alberta.
The homeowner
Both owners must be 55+. 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).
$480,000. Reverse mortgages typically advance ~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 default choice most people make), the balance grows as shown below. 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 (~$1,500–2,500), independent legal advice (~$400–800), and appraisal. Paid from the advance.
The race: home value vs. what you owe
Left to compound, the balance grows. The gap above the dashed line is your remaining estate equity. 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 it a non-event there.
Verified 2026 schedules: BC — $0 to $25K, $6/$1,000 to $50K, $14/$1,000 above, +$200 filing. AB — flat $35–$525 (max $525). ON — $0 to $50K, then $15/$1,000 (1.5%). Probate is charged on 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 (CHIP / Equitable 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.
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Case Studies — files like this
Anonymized case studies from our files. Names and identifying details removed.
- Case study · Residential / AlternativeA Private Second Mortgage, a Car Loan and Family Debt: One Alternative-Lender Refinance at 77% in Maple RidgeA private second mortgage, a $73,000 car loan, family debt and cards on two incomes: an alternative lender refinanced the Maple Ridge townhouse at about 77% in 2025, $750,000 at just under 5%, and paid everything out into one payment.Read the file →
- Case study · Residential / AlternativeBuying Out a Half Owner in Maple Ridge: An Alternative-Lender Refinance at 70% on Homestay and Suite IncomeBuying out a half owner on one fixed salary and non-taxable homestay income with no pay stubs: an alternative lender refinanced the Maple Ridge house at 70% in 2021, $1,050,000, grossing the homestay and child benefit up 25%.Read the file →
- Case study · Residential / PrimeSeveral Credit Lines Into One Payment: A Major-Bank Refinance at 25% on an Anmore Estate With a Coach HouseSeveral credit lines and a salary rising faster than its tax slips. A major Canadian bank refinanced the Anmore estate at about 25% in 2023, about $820,000 at about 4.8% on a five-year fixed term, and paid every line out into one payment.Read the file →
More case studies that use this calculator (1)
Reverse mortgage — quick answers
How much can I borrow with a reverse mortgage?+
Roughly 35–55% of the home's appraised value, scaling with age and location — the older the younger spouse and the stronger the market (Metro Vancouver, Victoria, Kelowna, Calgary, Edmonton), the higher the advance. Both owners on title must be at least 55. CHIP bases the approved amount on the age of the younger spouse; Bloom Finance, which lends in BC, Alberta and Ontario, uses the average age of joint borrowers instead (confirmed with the lender, September 2026), and Equitable Bank now uses the lower of the average age and ten years above the younger spouse (its broker notice of September 29, 2026), so a couple with an age gap can qualify for more at both. Your exact figure comes from the lender's appraisal and age formula.
Will I ever owe more than my home is worth?+
No. Both CHIP (HomeEquity Bank) and Equitable Bank's Reverse Mortgage Flex (formerly PATH) carry a no-negative-equity guarantee: 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 has grown above it. You also keep title to your home.
Do I have to make payments? How fast does the balance grow?+
Payments are optional — this is why it's often called a payment-optional mortgage. At most lenders (including CHIP and Equitable) you can make interest payments to keep the balance flat, or make none and let the interest compound. If you make no payments, reverse rates run about 1.5–2.5 percentage points above a 5-year fixed, so a $300,000 advance can grow to roughly $400,000–$425,000 by year 5 and $700,000–$850,000 by year 15. The calculator above lets you toggle between paying the interest and letting it compound so you can see the effect on your estate.
See it on a real file: Reverse Mortgage at 78 Ends the Payments →
How does a reverse mortgage affect probate and my estate?+
Probate (estate administration tax) is charged on the estate's value. The reverse-mortgage balance is a debt that reduces the net estate, which lowers probate. Alberta charges a flat fee capped at $525 regardless of estate size; BC charges about 1.4% and Ontario about 1.5% above their thresholds. The calculator shows the probate on the home-equity portion for each province.
Can I use it to give my kids a living inheritance?+
Yes — this is one of the most common reasons in BC and Alberta. You draw tax-free equity now and gift it while your children actually need it (a down payment, for example), keep your home and its future appreciation, and avoid the monthly payments a HELOC or refinance would demand. The trade-off is the compounding balance shrinking the estate over time, which the calculator models in plain dollars.
When is a reverse mortgage the wrong choice?+
When you have strong income and could comfortably qualify for a standard mortgage or HELOC, when you plan to move within 2–3 years (closing costs and accrued interest hit harder on short holds), or when family pressure — not the homeowner's own benefit — is driving it. We always run the full alternative analysis (HELOC, refinance, downsize, Manulife One) before recommending one.
Last updated: July 2026. Reverse-mortgage products reflect CHIP (HomeEquity Bank) and Equitable Bank's Reverse Mortgage Flex (formerly PATH); advance ranges, the no-negative-equity guarantee, and closing-cost ranges are program facts reviewed July 2026. Probate schedules are the current BC Probate Fee Act, Alberta Surrogate Rules, and Ontario Estate Administration Tax.
Related: CHIP vs PATH — the 2026 guide → · Equity take-out (HELOC / refinance) → · Manulife One →
Two pages on that desk pick up where this one stops: the full reverse calculator, with the advance by age and the year-by-year balance and reverse mortgage versus HELOC, the comparison most people actually need.
Every calculator here is built on published Canadian government rules and lender methodology, and was last checked for accuracy on October 18, 2026 — the arithmetic re-verified and every page re-read on screen. Rates and thresholds change — we confirm the current numbers for your file before you rely on them.