Reverse Mortgage Calculator Canada 2024
How does a reverse mortgage work?
A reverse mortgage allows you to borrow money from your home’s equity without needing to sell your home. With a reverse mortgage, no monthly mortgage or interest payments are required. You will only have to pay back the reverse mortgage, plus interest, when your reverse mortgage ends, such as when you move out or sell your home.
“For a full list of rates for various terms and products, visit our reverse mortgage rates page.”
The money you receive from a reverse mortgage can either be one large amount today, or you can schedule it to receive smaller payments for years. These smaller payments can help to provide income during your retirement.
Are reverse mortgages safe?
Reverse mortgages are offered by Equitable Bank and Home Equity Bank (CHIP in Canada). These two banks are federally regulated and licensed, which ensures that they are safe to use. You will never owe more money than your home is worth with a reverse mortgage.
CHIP is endorsed by the Canadian Association for Retired Persons and The Royal Canadian Legion. Equitable Bank is Canada’s seventh-largest bank and is a publicly-traded company on the Toronto Stock Exchange.
How much can I borrow with a reverse mortgage?
You can use our easy reverse mortgage calculator to estimate how much you can borrow, with no personal information needed. This estimate is based on your location, age, gender, home type, and home value.
Home Value
In Canada, you can borrow up to 55% of your home’s value with a reverse mortgage. Your home will need to be appraised when applying for a reverse mortgage. The percentage of your home value that you will be able to borrow will be affected by the items listed below.
Location
Equitable Bank only offers reverse mortgages in Ontario, Quebec, British Columbia, and Alberta. CHIP reverse mortgages are available in all ten provinces.
Gender
Considering that females have a higher life expectancy vs. males, they should borrow less. Females should borrow less to leave more initial equity in their home for their interest which might accumulate over a longer period.
Home Type
You can borrow more if you live in a single-family home, semi-detached, detached duplex, triplex, or quadruplex. You will be able to borrow a slightly lower amount if you live in a townhouse or condo apartment.
Age
The minimum age to be eligible for a reverse mortgage is 55 years old. The older you are, the more you can borrow.