Four ways to use your home's equity

Same cash on every route. What it costs, what you pay each month, and what is left at each age.

Try a scenario:
What if:
Your home
Your best estimate; a lender orders an appraisal.
Used for transfer tax when you downsize.
Type
Area
A reverse mortgage must pay this off first.
You
Reverse mortgages start at 55; every owner on title must qualify.
The money you need
0 = for the whole projection.
Which reverse mortgage
Scheduled advances from $500 a month for up to 20 years, adjustable rate only (prime + 2.34% = 7.04%). 15–55%. Set-up about $2,270.
Pensions, CPP, OAS and other income. A reverse mortgage doesn't need it; a HELOC does.
HELOC interest
Rates, prices and costs (change the assumptions)
Flex: 6.28%.
HomeEquity Bank's posted 5-year rate (7.09%, read November 1, 2026); other lenders don't publish a renewal rate, so we assume the same.
Flex: 7.04% (adjustable, moves with prime).
Default: prime 4.70% (as of October 29, 2026) + 0.50 (our typical-premium estimate)
Our assumption for long-run home price growth, not a forecast
Our assumption for the return on invested cash, before tax
Our selling-cost assumption: commission (FCAC: typically 2–6%) plus staging and repairs
Show what is left at age
Reverse mortgage$624,842EQ Flex (monthly or lump). No payments. Set-up about $2,270.
HELOC$743,320Interest paid every month: about $499 a month in year one.
Downsize · most left$786,041Selling, transfer tax and moving: about $55,775.
Sell and rent$214,526Rent $2,600 a month, rising each year.

"What is left" = what you or your estate keep if the home is sold at that age: the home's value after selling costs, minus what is owed, plus any invested cash. HELOC interest you paid is subtracted.

Mitey

Mitey's reading of your plan

With EQ Bank Flex, lump sums are charged 6.28% compounded twice a year (then 7.09% after year 5) and the scheduled monthly advances 7.04%. A balance with no payments doubles about every 11.2 years. Your starting balance of $112,270 grows to $559,213 by age 85, including the monthly advances.

More: home growth, negative equity and the HELOC

Your home grows 3.0% a year in this scenario, from $800,000 to $1,246,374. The loan grows faster than the home (6.28% vs 3.0%), so the equity left shrinks each year.

The balance stays below the home's value through age 95.

A HELOC would cost about $499 a month in interest in year one, rising as you draw; its limit is 65% of the home's value ($520,000), and you must qualify on income.

What Flex may advance at 70Our estimate: about 42% of the home's value, or $336,000, for a house in a city or town. 15–55%. Lenders publish only the range and say it depends on age, location and property type. How we estimate this.
How much at each lender, for your age, home and ON (estimates; lenders decide)
ProductMost at 70RateYour plan
HEB CHIP (lump sum)$336,000 (42%)6.49%Lump sums only
HEB Income Advantage (monthly)$336,000 (42%)7.09% · monthly 7.36%Monthly minimum $1,000
EQ Flex (monthly or lump) (shown)$336,000 (42%)6.28% · monthly 7.04%Fits
EQ Flex Lite (lump sum)$244,364 (31%)6.23%Lump sums only
EQ Flex Plus (70+, lump sum)$360,436 (45%)7.43%Lump sums only
Bloom (lump sum)$336,000 (42%)6.33%Lump sums only
Home Trust EquityAccess (lump sum)$336,000 (42%)6.23%Lump sums only
Home Trust EquityAccess+ (monthly or lump)$336,000 (42%)6.29% · monthly 7.05%

Estimate, not advice. Educational estimate only, not financial, mortgage, tax or legal advice. Lenders, insurers and governments set their own rules and can change them; confirm with a licensed professional before you decide.

At age 85, downsizing leaves the most: $786,041. Reverse mortgage leaves $624,842.

Chart
What is left at each ageNet equity plus invested cash for each route, from age 70 to 95.$0$500K$1M$1.5M$2M70737679828588919495
Show the numbers
What is left at each age
Reverse mortgageHELOCDownsizeSell and rent
70$648K$649K$609K$643K
71$653K$656K$619K$627K
72$659K$663K$629K$609K
73$663K$670K$640K$591K
74$668K$677K$650K$570K
75$671K$684K$661K$548K
76$672K$691K$672K$524K
77$673K$697K$684K$499K
78$672K$704K$695K$471K
79$670K$710K$707K$442K
80$667K$716K$720K$410K
81$662K$722K$732K$376K
82$655K$728K$745K$339K
83$647K$733K$759K$300K
84$637K$738K$772K$259K
85$625K$743K$786K$215K
86$620K$758K$810K$177K
87$614K$773K$835K$137K
88$605K$788K$860K$94K
89$594K$803K$887K$48K
90$581K$819K$914K$0
91$566K$834K$942K$0
92$547K$850K$971K$0
93$525K$866K$1M$0
94$500K$883K$1M$0
95$471K$899K$1.1M$0

How much can I take and still leave something?

With the monthly amount above, the largest up-front amount that still leaves $250,000 at age 85 is about $283,730 (after paying off the mortgage and fees). You entered $60,000.

HELOC interest by age
HELOC interest per month in the year ending at each age (paid from other money)
AgeInterest chargedPaid from your pocketHELOC owed
75$666/mo$666/mo$158,800
80$874/mo$874/mo$206,800
85$1,082/mo$1,082/mo$254,800
90$1,104/mo$1,104/mo$254,800
95$1,104/mo$1,104/mo$254,800
Rate × home-growth grid
Reverse mortgage: what is left at age 85
Rate ↓ / Home growth →0%1%2%3%4%5%
5.28%$263K$385K$525K$687K$871K$1.1M
5.78%$233K$355K$496K$657K$841K$1.1M
6.28%$201K$323K$464K$625K$810K$1M
6.78%$167K$289K$430K$591K$776K$987K
7.28%$131K$253K$393K$555K$739K$951K
7.78%$92K$214K$355K$516K$701K$912K
Rows: the first-term reverse-mortgage rate (the renewal rate moves with it). Columns: yearly home price growth. Your scenario is highlighted.
Every five years, route by route
Every five years: what is left on each route (and the reverse-mortgage balance)
AgeReverse owedReverse mortgage leftHELOC leftDownsize leftSell and rent left
70$112,270$647,730$649,200$609,225$642,500
75$210,129$670,920$683,930$661,017$548,220
80$354,687$666,689$715,874$719,689$409,789
85$559,213$624,842$743,320$786,041$214,526
90$791,400$581,245$818,555$913,876$0
95$1,119,993$471,279$899,270$1,062,645$0
HELOCYour income passes our version of the lender's test: a payment of about 1,834/month at 7.20% needs roughly 56,416/year (before property tax and heating; the lender decides).
Sell and rentRent and the monthly amount use up the sale proceeds at about age 90.

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Assumptions & sources

Assumptions

  • Reverse mortgage (EQ Bank Flex): interest compounds semi-annually and is added to the balance; set-up about $2,270 (lender fee, plus $425 appraisal and $850 independent legal advice) is paid from the advance. Lump sums 6.28% for the first 5 years, then 7.09%; scheduled advances 7.04%, adjustable; real renewal rates will differ.
  • Maximum advance: our age curve scaled to Flex's published range (15–55%.); condos 3 points lower, rural homes 5 points lower (estimates).
  • HELOC: limit 65% of value (OSFI B-20); interest at 5.20% is paid every month from other money; we grow those payments at 4.00% and subtract them so the routes compare fairly. Qualifying: a payment at the higher of the rate + 2 points or 5.25% over 25 years within a 39% housing ratio of the income entered (our simplification of the lender's test).
  • Downsizing: selling costs 5.00% of the price plus $1,500 legal; transfer tax on the new home from the province's published schedule; $1,800 legal on the purchase; $6,000 moving.
  • Sell and rent: proceeds invested at 4.00%; rent of $2,600 rises 2.5% a year.
  • Everything is before tax and in today's dollars only at age 70; later values are nominal. No inflation adjustment.

Sources

  1. Financial Consumer Agency of Canada — Reverse mortgages (effective October 15, 2025). Checked .
  2. EQ Bank (Equitable Bank) — Reverse mortgage comparison and rates (prime 4.70% as of October 29, 2026) (effective October 29, 2026). Checked .
  3. EQ Bank (Equitable Bank) — Reverse mortgage advances. Checked .
  4. HomeEquity Bank — CHIP posted rates (applicable upon reset). Checked .
  5. OSFI — Guideline B-20: Residential mortgage underwriting practices and procedures. Checked .
  6. OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
  7. Financial Consumer Agency of Canada — Home equity lines of credit. Checked .
  8. Financial Consumer Agency of Canada — Selling a home (costs, realtor commissions) (effective October 10, 2025). Checked .
  9. Government of Ontario — Calculating land transfer tax. Checked .
  10. Government of British Columbia — Property transfer tax. Checked .
  11. Bank of Canada — Target for the overnight rate (series V39079): 2.50% from October 29, 2026 (effective October 29, 2026). Checked .
Downsize leaves the most at 85$786,041 · reverse $624,842
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