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Reverse Mortgage Calculator

Find out how much wealth you can unlock with Wise Equity using our free and easy-to-use calculator. Easy 3 steps!

Reverse Mortgage Calculator

Reverse Mortgage Interest Rates

Secure better rates and lower fees with Wise Equity for your reverse mortgage—available nationwide in Canada!

5-year fixed rates

6.49%

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6.49%

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6.69%

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6.69%

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RETIRE WITH PEACE OF MIND

You Deserve it.

You’ve worked hard your entire life, and you deserve a retirement filled with comfort, security, and peace of mind. At Wise Equity, we understand that retirement is about more than just saving—it’s about making smart, informed choices that reflect the years of dedication you’ve put into building your future. That’s why we go beyond traditional retirement planning, helping you optimize your mortgage strategy so you can enjoy your Golden Years.

The Importance of Mortgage Planning for Retirement

As retirement nears, your financial priorities shift, and your mortgage plays a crucial role in your overall strategy. Whether you’re aiming to pay off your mortgage, downsize to a more manageable home, or access your home’s equity for additional funds, understanding your mortgage options is key to ensuring financial stability in retirement.

Get a Free Consultation Today!

REVERSE MORTGAGE

What Is a Reverse Mortgage?

A reverse mortgage is a financial product that allows Canadian homeowners aged 55 and older to access the equity in their homes. It’s a loan secured by the value of your property, enabling you to convert up to 55% of your home’s value into tax-free cash while continuing to live in your home.

Key Features

No Monthly Payments:

You do not need to make regular mortgage payments. The loan is repaid only when you move, sell your home, or pass away.

Eligibility:

Available exclusively to Canadian homeowners aged 55 and over, and the property must be your primary residence.

Qualification Factors:

The amount you can borrow depends on your age, the appraised value of your home, its location, and the type of property.

A Reverse Mortgage is specifically designed for older Canadians, making it easier to qualify compared to other lending options.

How Do Reverse Mortgages Work in Canada?

A reverse mortgage allows Canadian homeowners aged 55 and over to tap into their home equity and access tax-free cash without making regular monthly payments. This means you can convert a portion of your home’s value into funds while staying in your home, without the need to move, sell, or downsize.

Key Features

Retain Ownership:

You keep full ownership and title of your home. The loan does not force you to move or sell, regardless of changes in your income or home value.

No Repayment Pressure:

You or your estate will never owe more than the fair market value of your home at the time of its sale, ensuring that your home remains a source of financial security, not burden.

Benefit from Appreciation:

Any increase in your home’s value benefits you directly. You only need to maintain the property and continue to pay taxes and insurance.

A reverse mortgage is designed to provide financial flexibility while allowing you to enjoy your home for as long as you wish.

Flexible Use of Funds

The funds from a reverse mortgage can be used in various ways to enhance your financial flexibility:

Enhance Your Lifestyle

Supplement your daily living expenses

Boost Cash Flow

Increase your monthly income.

Consolidate Debt

Pay off existing debts.

Invest in Real Estate

 Purchase an additional property.

Cover Medical Costs

 Address healthcare expenses.

Home Renovations

Improve or update your home.

Enjoy a Vacation

Take that well-deserved getaway.

Why Seniors Choose Wise Equity

  • Save on Interest

Our access to special low interest rates can save you thousands of dollars.

  • Larger Loan Approvals

We secure bigger loan approvals than you might achieve on your own.

  • Reduced Setup Costs

Save up to $500 on initial setup fees.

  • Expert Guidance

Our experienced brokers make the process stress-free.

Our Simple Reverse Mortgage Process

Consult with an Expert

Discuss your options with no obligation.

Choose Your Payment Method

Decide if you want a lump sum or periodic payments.

Sign the Documents

We handle all the paperwork for you.

Enjoy Your Funds

Use your tax-free, payment-free loan for life.

Our W.E Mortgage Plan Trusted Partners

FAQs on How a Reverse Mortgage Works in Canada

To qualify for a reverse mortgage in Canada, you need:

• Age: Be 55 or older (both you and your spouse if applicable).
• Homeowner Status: Own a Canadian property.
• Property Type: Have a qualifying home type (e.g., detached, condo).
• Value: Your home must be worth at least $250,000.
• Condition: The property should be in good condition.
• Equity: Have sufficient home equity.

To qualify for a reverse mortgage in Canada, you need:

• Age: Be 55 or older (both you and your spouse if applicable).
• Homeowner Status: Own a Canadian property.
• Property Type: Have a qualifying home type (e.g., detached, condo).
• Value: Your home must be worth at least $250,000.
• Condition: The property should be in good condition.
• Equity: Have sufficient home equity.

To qualify for a reverse mortgage in Canada, you need:

• Age: Be 55 or older (both you and your spouse if applicable).
• Homeowner Status: Own a Canadian property.
• Property Type: Have a qualifying home type (e.g., detached, condo).
• Value: Your home must be worth at least $250,000.
• Condition: The property should be in good condition.
• Equity: Have sufficient home equity.

To qualify for a reverse mortgage in Canada, you need:

• Age: Be 55 or older (both you and your spouse if applicable).
• Homeowner Status: Own a Canadian property.
• Property Type: Have a qualifying home type (e.g., detached, condo).
• Value: Your home must be worth at least $250,000.
• Condition: The property should be in good condition.
• Equity: Have sufficient home equity.

To qualify for a reverse mortgage in Canada, you need:

• Age: Be 55 or older (both you and your spouse if applicable).
• Homeowner Status: Own a Canadian property.
• Property Type: Have a qualifying home type (e.g., detached, condo).
• Value: Your home must be worth at least $250,000.
• Condition: The property should be in good condition.
• Equity: Have sufficient home equity.

Nested Accordion
General reverse mortgage questions +
How do I qualify for a reverse mortgage? +
Qualifying for a reverse mortgage with a bank is largely based on property type, location, and borrower’s age. We lend to borrowers aged 55+ with homes in urban centres in Alberta, British Columbia, and Ontario.
How much equity can I access? +
The amount the Bank will lend depends on two factors. One, the borrower’s age. And secondly, the home’s appraised value. Borrowers can now access up to 55% of their home's value. Our eligibility calculator helps calculate how much you might be eligible for.
Can I get a reverse mortgage with bad credit? +
You can. While it’s encouraged to have a sound financial history, life happens and unforeseen circumstances arise. We get it—that’s why we have options for everyone.
With a reverse mortgage, who owns the house? +
You do. You will not transfer ownership of your property to the bank when receiving a reverse mortgage.
Could I owe more than my house is worth with a reverse mortgage? +
As long as you have met your mortgage obligations, the amount you owe on the due date will not be more than the fair market value.
What options do I have for receiving my reverse mortgage funds? +
You can take the mortgage proceeds upfront as a one-time advance (an Initial Advance). Alternatively, you can take a large sum upfront (minimum amount of $25,000) and the remaining funds as Single Advances and/or Recurring Advances scheduled over several years.
Who is responsible for paying property taxes for a reverse mortgage? +
You must pay property taxes directly to the municipality.
What is a reverse mortgage holdback, and when is it done? +
At the time of application or during the life of the reverse mortgage, we may require a holdback to cover home repairs if deficiencies could affect liveability or have the potential to materially affect the home’s future value. We may also require a holdback if there are tax or condominium arrears.
Can a Power of Attorney (POA) apply for a reverse mortgage on my behalf? +
A POA for property may be used when applying for a reverse mortgage. Your attorney must have the ability to deal with real property. The POA will not be permitted to apply on your behalf simply because you are out of the country.
Can I receive counselling about reverse mortgage loans from Equitable Bank? +
Yes, we’re here to help. In addition, you will need to meet with a lawyer to receive Independent Legal Advice (ILA) to ensure you understand the product and the legal obligations.
How can I use the funds from a reverse mortgage? +
You could use the funds to cover daily expenses, home renovations, medical bills, in-home care, family needs, trips, or help a relative with a down payment, it’s up to you.
We also offer a range of home-financing solutions. You can work with a mortgage broker to find a plan that works for you.
Can the bank sell or foreclose on my home? +
If you continue to meet your mortgage obligations, you should have no concerns about losing your home to the bank.
Can the bank sell or foreclose on my home? +
If you continue to meet your mortgage obligations, you should have no concerns about losing your home to the bank.
What if I already have a mortgage on my property? +
If you have a mortgage, it must be paid off so that the reverse mortgage can be registered in first priority. You can use the proceeds from the initial advance to pay off your existing mortgage, any outstanding debt, or lien registered against the property.
Who gets the profit if my home appreciates? +
You do. You must repay the value of the mortgage principal, interest, and any fees. If your home increases in value, the gains are yours to keep.
Which provinces does Wise Equity service with reverse mortgages? +
A reverse mortgage with Equitable Bank is available in Alberta, British Columbia, Ontario, and Quebec.
Do you offer reverse mortgages on mobile homes, condos, and apartments? +
At Wise Equity, we offer reverse mortgages on detached, semi-detached, townhomes, and condos.
Can I get out of my reverse mortgage? +
Yes, you can. We recognize needs change and our product is designed for that. That’s why we offer flexible options to repay a portion of principal and interest. If you choose to repay the entire balance, there may be a prepayment charge.
Can I make prepayments? +
You can. Although no regular payments are required until the reverse mortgage becomes due, you have the benefit of prepayment privileges. This allows you to prepay your principal or interest without being subject to a prepayment charge (which can be calculated here). Of course, certain conditions must be met.
When can I make a prepayment without charge? +
Interest payment - Prepay any of your interest outstanding once per calendar month.

Principal payment - Prepay up to 10% of your principal once per 12-month period (starting from your initial advance).

After 5 years - Prepay in excess of 10% of your principal or the entire outstanding balance within 30 days of an interest rate reset date.

After 10 years - Prepay in excess of 10% of your principal or the entire outstanding balance at any time

1Subject to certain conditions

Note:
Any payments received will be applied first to fees and charges, then to interest before being applied to principal.
If you exceed your prepayment privilege, you will be subject to a prepayment charge and applicable fees.
How much equity do I need for a reverse mortgage? +
The value of the reverse mortgage must be equal to or greater than the value of any loan secured against the property.
For example, a borrower who qualifies for 40% on a $500,000 home could access $200,000, provided any loans they have secured by the home are less than $200,000.
With a reverse mortgage, who owns the house? +
Is there an age requirement to qualify for a reverse mortgage? +
Yes, you must be at least 55 years old to qualify for a reverse mortgage with Equitable Bank.
How can I use my reverse mortgage funds? +
However you like. Many Canadians use their reverse mortgage funds to repay existing loans or mortgages, help family members, purchase a new property, or simply to lead a more comfortable life.
What fees do I have to pay with a reverse mortgage from Equitable Bank? +
Equitable Bank charges a one-time set-up fee of $995. Much like a regular mortgage, there are additional appraisal and Independent Legal Advice fees that come with closing a reverse mortgage.
How can I reduce my reverse mortgage interest rate? +
To reduce interest accumulation, you can limit the amount of your initial advance and take out additional funds only as needed. There’s also the option of paying down interest monthly, without a prepayment charge.
Are reverse mortgage rates higher than standard mortgages? +
Because no payments are required until the mortgage is due, reverse mortgage rates tend to be higher than standard mortgages. We offer a range of fixed and adjustable interest rates so you can choose the interest rate that works best for you.
Is there a setup fee for a reverse mortgage? +
There is a setup fee of $995.00, which will be deducted from the initial advance.
Reverse mortgage planning +
When is the mortgage due? +
Since the Equitable Bank Reverse Mortgage is meant for long-term lending with no quantified term, the due date of the mortgage is established on the occurrence of the earliest of any of these events:
  • Sale or transfer of the property
  • Default
  • When the last borrower moves into a long-term care or retirement residence
  • When the last borrower passes away
Subject to certain conditions.
What do I have to pay on the mortgage due date? +
  • Principal and accrued interest
  • Default expenses, if any
  • Fees and costs
  • Prepayment charge, if any
What happens if I outlive my reverse mortgage with Wise Equity? +
Technically, you can't "outlive" a reverse mortgage.

As long as you meet your mortgage obligations, like paying property taxes and home insurance, the amount you owe on the due date will never be more than the fair market value.
What if my spouse dies after I get a reverse mortgage? +
If both spouses are registered as joint tenants, the surviving spouse can continue to be a borrower and is entitled to all the benefits a reverse mortgage has to offer.
What is the minimum property value required for a reverse mortgage from Wise Equity? +
The appraised value of your home must be at least $250,000.
How much equity will I have left? +
At any time, the remaining equity on your home will depend on the difference between the home’s current value and the amount owing on the reverse mortgage. Learn more.
Is there a chance I could owe more than fair market value of my home? +
Provided you have met your mortgage obligations, the amount you owe to Equitable Bank on the due date will not exceed the fair market value.
What is the fair market value based on? +
Fair market value is the amount that would be paid on the open market, on the applicable date, to buy the property, assuming there are no legal claims against the property. This value would be established by a certified home appraiser.
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W.E Reverse Mortgage Plan:
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  • Corporate Profit Liquidation Strategy
  • Proactive Downsizing Strategy
  • Second Home Strategy
  • Gift/ Generational Wealth Strategy

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    Suite 200, Toronto, ON M1H 3E3

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