Reverse Mortgage Calculator Canada
By Hami Tahm · Last reviewed September 2026
For homeowners 55 and older. See HomeEquity Bank's published 55% ceiling on a CHIP-style reverse mortgage, and project how the loan balance and your home equity change over time — this is not your personal approved amount.
By Hami Tahm · Last reviewed September 2026
How much can I borrow with a reverse mortgage in Canada?
HomeEquity Bank's CHIP Reverse Mortgage — Canada's largest reverse mortgage — publishes a maximum of 55% of your home's appraised value. There is no public age-based formula for the exact amount a specific borrower is approved for: that depends on age, home value, property type, and location, and comes only from the lender. This calculator shows the 55% ceiling and projects a scenario from an amount you choose.
This shows a ceiling and a projection — not your approved amount
55% of appraised value is HomeEquity Bank's own published MAXIMUM, not a personal approval. HomeEquity Bank does not publish a public age-based loan-to-value schedule — the real number a specific borrower qualifies for depends on age, home value, property type, and location, and only the lender can tell you that. Rates shown reflect HomeEquity Bank's posted CHIP rates as of September 2026 and change regularly. For your real, personalized number, get a free estimate at homeequitybank.ca or chip.ca, or speak with a licensed mortgage professional.
Reverse mortgage scenario calculator
Eligibility: Canadian homeowner, 55 or older, property is your primary residence.
Must be 55+ to qualify. Used only for the eligibility check — never to derive an amount.
HomeEquity Bank's posted CHIP rates, September 2026.
Capped at the 55% ceiling — $385,000 on the home value entered above.
This is your own assumption, not a HomeCalc forecast. Defaults to 0% — home value held flat.
Your scenario
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The 55% ceiling, the amount you chose, and the projected loan balance and home equity
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Projected loan balance and home equity
| Year | Loan balance | Projected home value | Remaining equity |
|---|---|---|---|
| 5 | $217,175 | $700,000 | $482,825 |
| 10 | $314,433 | $700,000 | $385,567 |
| 15 | $455,246 | $700,000 | $244,754 |
| 20 | $659,119 | $700,000 | $40,881 |
"NNEG applies" means the projected loan balance would exceed the projected home value at that horizon. HomeEquity Bank's No Negative Equity Guarantee means you or your estate will never owe more than the home's fair market value at the time it's sold — remaining equity is shown as $0 rather than negative in that case.
Key Takeaways
- HomeEquity Bank's CHIP Reverse Mortgage caps borrowing at 55% of appraised home value — a published ceiling, not a personalized approval. The real number depends on age, home value, property type, and location, available only from the lender.
- A reverse mortgage requires no regular payments. Interest compounds semi-annually — the same Interest Act convention as a conventional Canadian mortgage — so the balance grows every year rather than shrinking.
- The No Negative Equity Guarantee caps what you or your estate ever owe at the home's fair market value when it's sold, even if the compounding balance would otherwise exceed it.
- Eligibility is straightforward: Canadian homeowner, 55 or older, primary residence — no income or payment-based qualification the way a conventional mortgage has one.
Frequently asked questions
- How much can I borrow with a reverse mortgage in Canada?
- HomeEquity Bank's CHIP Reverse Mortgage — Canada's largest reverse mortgage — publishes a maximum of 55% of your home's appraised value. That is a ceiling, not your personal number: HomeEquity Bank does not publish a public age-based formula, and the actual amount you'd be approved for depends on your age, home value, property type, and location, determined by speaking with the lender directly. This calculator shows the 55% ceiling and projects a scenario from an amount you choose — it is not a personalized approval.
- Do I make monthly payments on a reverse mortgage?
- No. A reverse mortgage requires no regular payments — interest is added to the loan balance and compounds over time, and the full amount (principal plus accumulated interest) becomes due when the home is sold, or the last borrower moves out or passes away. Because nothing is paid down along the way, the balance grows every year rather than shrinking like a conventional mortgage.
- Who is eligible for a reverse mortgage in Canada?
- You must be a Canadian homeowner, at least 55 years old, and the property must be your primary residence. There is no income or credit test in the way a conventional mortgage has one, because there are no required payments to qualify for.
- How does interest compound on a reverse mortgage?
- CHIP Reverse Mortgage interest compounds semi-annually, the same convention required by Canada's Interest Act for a conventional mortgage. That means the posted annual rate understates the true annual cost slightly — a 7.54% nominal rate compounds to an effective annual rate a little above 7.54%, and that effective rate is what actually grows the balance year over year.
- What is the No Negative Equity Guarantee?
- HomeEquity Bank's No Negative Equity Guarantee means the amount owed on a CHIP Reverse Mortgage will never exceed the fair market value of the home at the time it is sold, provided the home has been reasonably maintained and sold on the open market within a reasonable time. If the compounding balance ever grows past what the home is worth, the guarantee — not the borrower or their estate — absorbs the difference.
- What does a reverse mortgage cost to set up?
- HomeEquity Bank states a typical closing/administrative cost of around $1,795, though the actual figure varies by circumstance (appraisal, legal fees, and other closing costs can add to this). Unlike the interest itself, this is usually paid once at closing rather than compounding over time.
A reverse mortgage is one way to access home equity 55+ — it isn't the only one. Compare it with a HELOC or second mortgage, check what you'd need for a down payment on a different property, or see what you'd qualify for on a conventional mortgage instead.
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