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ReverseMortgaged.caCanadian reverse mortgages, followed to the endAsk Mitey
Methodology

Sources, formulas and changelog

Short answer

Our engine compounds reverse-mortgage interest semi-annually, uses each product's published rate, fees and range, estimates the maximum with an age curve we disclose, tests HELOC qualification on income, and applies each province's transfer tax when you downsize. Every rule lists its source and the date we checked it.

Figures as of November 1, 2026.

Every lender term, rule and assumption our reverse-mortgage tools use, with its source and the date we checked it, the formulas behind the comparison engine, and a dated log of changes. Lender facts were last checked November 1, 2026.

Facts checked How we check facts
Mitey the yeti holds a clipboard with a checklist.
Mitey shows his working: every formula, rule and date in one place.
The compounding formula, step by step
The compounding formula, step by step: inputs, steps and result
Borrowed$100,000
Rate6.49%
Monthly rate(1 + 0.03245)^(1/6) − 1semi-annual compounding, Interest Act convention
After 1 year$106,595
After 10 years$189,400

Open this example in the calculator →Computed by our engine with the lender terms and rules on the methodology page.Computed November 1, 2026.

How the comparison engine works

Every route delivers the same money to the household: the up-front amount (after paying off any mortgage) and the monthly amount for the years you choose. The engine then steps month by month to the age you pick and records, at each birthday, what is owed, what the home is worth and what is left.

  • Reverse mortgage. Balancem+1 = balancem × (1 + i) + advance, where i = (1 + rate/2)1/6 − 1 (semi-annual compounding). No payments. What is left = home value × (1 − selling costs) − balance, never below zero (no-negative-equity terms). At 6.49% a balance doubles about every 10.9 years.
  • HELOC. Limit = 65% of value (OSFI B-20). Interest of rate/12 is due every month and paid from other money; those payments are grown at the investment return and subtracted from what is left, so routes compare like for like. Qualifying payment: the amount borrowed amortized over 25 years at max(rate + 2, 5.25)%.
  • Downsizing. Cash freed = sale price − selling costs − mortgage − new home price − land transfer tax (provincial schedule, and Toronto/Montréal municipal tax) − legal − moving. The rest is invested and funds the monthly amount. What is left = new home × (1 − selling costs) + investments.
  • Sell and rent. Proceeds after costs are invested; rent (rising yearly) and the monthly amount come out of the investments. What is left = investments.

How we estimate the maximum by age

Canadian lenders publish a maximum (HomeEquity Bank 55%, EQ Bank (Equitable Bank) 40%, EQ Bank (Equitable Bank) 55%, EQ Bank (Equitable Bank) 59%, Home Trust Company 55%, Bloom Finance Company 55%) and say the amount depends on age, home value, location and property type. None publishes the age table, so ours is an estimate: it rises with the youngest owner's age and reaches the maximum for the oldest borrowers.

Our estimated maximum (city house; condos −3 points, rural −5 points)
Age5560657075808590
Share of value20%28%36%42%47%51%54%55%

Every value we use

Rules, lender terms and assumptions
ItemValueSource
Minimum age of every borrower on title55HomeEquity Bank
Highest share of home value most products advance (%)55HomeEquity Bank
Highest share with EQ Flex Plus (70+) or HEB Custom Solutions (%)59EQ Bank (Equitable Bank)
Condo reduction to our age curve (percentage points)3Our estimate
Rural reduction to our age curve (percentage points)5Our estimate
Minimum appraised value, CHIP and EQ Bank ($)250000HomeEquity Bank
Minimum initial lump-sum advance, CHIP and EQ Bank ($)25000HomeEquity Bank
HomeEquity Bank closing and admin fee, CHIP ($)1795HomeEquity Bank
Appraisal fee, HomeEquity Bank example ($)425HomeEquity Bank
Independent legal advice fee, HomeEquity Bank example ($)850HomeEquity Bank
Days the estate has to repay a HomeEquity Bank loan after the last borrower dies180HomeEquity Bank
Months Bloom gives heirs to arrange repayment6Bloom Finance Company
Months a year you must live in the home (HomeEquity Bank; FCAC says 'typically')6HomeEquity Bank
Years before the example rate resets to the posted rate (a 5-year term)5Our estimate
HELOC revolving limit, share of home value (OSFI B-20)0.65OSFI
Conventional (uninsured) borrowing limit, share of value0.8OSFI
Qualifying-rate buffer over the contract rate (percentage points)2OSFI
Qualifying-rate floor (%)5.25OSFI
Years over which we assume a lender tests the amount borrowed25Our estimate
Housing-cost share of gross income lenders typically allow (%)39Our estimate
HELOC set-up costs: appraisal and legal (our estimate; some banks cover them)800Our estimate
Prime rate stated by HomeEquity Bank and EQ Bank, as of October 29, 2026 (%)4.7EQ Bank (Equitable Bank)
Typical HELOC premium over prime (percentage points)0.5Our estimate
Legal fees and mortgage discharge when selling ($)1500Our estimate
Legal fees, title insurance and adjustments when buying the smaller home ($)1800Our estimate
Realtor commission, low end of FCAC's typical range (%)2Financial Consumer Agency of Canada
Realtor commission, high end of FCAC's typical range (%)6Financial Consumer Agency of Canada
Our assumption for long-run home price growth, not a forecast3Our estimate
Our assumption for the return on invested cash, before tax4Our estimate
Our selling-cost assumption: commission (FCAC: typically 2–6%) plus staging and repairs5Our estimate
Our moving-cost assumption ($)6000Our estimate
Example monthly rent for a two-bedroom ($); use a real listing2600Our estimate
Our assumption for yearly rent increases (%)2.5Our estimate

Changelog

  • 2026-11-02: The comparison now prices each product as its lender does: CHIP lump sums at CHIP rates, scheduled monthly advances only on products that offer them (HomeEquity Bank Income Advantage at 7.36% variable with a $1,000 minimum; EQ Bank Flex adjustable at prime + 2.34% from $500 a month for up to 20 years; Home Trust EquityAccess+). Added Home Trust EquityAccess (four lenders, one sold through brokers) and a per-lender panel for your age, home and province.
  • 2026-11-02: HELOC route: interest can now be drawn from the line itself, it is marked not possible without qualifying income, and the first-year payment shows the year's average interest rather than the first month's. Text-size control now scales the calculators too.
  • 2026-11-01: Site rebuilt on the MITEY site kit. Lender terms re-read: HomeEquity Bank CHIP special rates as of October 29, 2026 (5-year 6.49%), posted rates (5-year 7.09%), fees and prepayment charges; EQ Bank Flex Lite, Flex and Flex Plus rates and ranges; Bloom rates and fees. FCAC reverse-mortgage guidance (page dated 2025-10-15).
  • 2026-11-01: Bloom's website is now bloomfin.ca; the old bloomfinance.ca address belongs to an unrelated firm, so we don't link to it.
  • 2026-10-29: Bank of Canada policy rate rose from 2.25% to 2.50%; HomeEquity Bank and EQ Bank now state prime at 4.70%. Our HELOC example rate follows.
  • 2025-10-15: FCAC's reverse-mortgage page last updated (the version we summarize).

All sources

Primary sources (checked dates shown)

  1. Financial Consumer Agency of Canada — Reverse mortgages (effective October 15, 2025). Checked .
  2. Financial Consumer Agency of Canada — Selling a home (costs, realtor commissions) (effective October 10, 2025). Checked .
  3. Financial Consumer Agency of Canada — Home equity lines of credit. Checked .
  4. HomeEquity Bank — CHIP Reverse Mortgage rates (special rates as of October 29, 2026) (effective October 29, 2026). Checked .
  5. HomeEquity Bank — CHIP posted rates (applicable upon reset). Checked .
  6. HomeEquity Bank — CHIP Reverse Mortgage: eligibility and closing fee. Checked .
  7. HomeEquity Bank — CHIP products: CHIP, Income Advantage, CHIP Max, CHIP Open. Checked .
  8. HomeEquity Bank — CHIP frequently asked questions. Checked .
  9. HomeEquity Bank — Client FAQs (repayment, estate, default). Checked .
  10. HomeEquity Bank — Fee schedule (effective April 1, 2024). Checked .
  11. HomeEquity Bank — Income Advantage rates and closing cost. Checked .
  12. HomeEquity Bank — CHIP Max rates. Checked .
  13. HomeEquity Bank — CHIP Open rate and prepayment. Checked .
  14. HomeEquity Bank — HEB Advantage rates (APR example with $850 ILA and $425 appraisal). Checked .
  15. HomeEquity Bank — Custom Solutions (up to 59%). Checked .
  16. HomeEquity Bank — Reverse mortgage calculator (age 65, Halifax example). Checked .
  17. HomeEquity Bank — Prepayment charge calculator (contracts 32–34). Checked .
  18. HomeEquity Bank — Reverse mortgage closing costs (blog, 2019; page modified 2026-03-23) (effective October 2, 2019). Checked .
  19. HomeEquity Bank — CHIP Reverse Mortgage (tax-free, OAS and GIS). Checked .
  20. EQ Bank (Equitable Bank) — EQ Bank Reverse Mortgage. Checked .
  21. EQ Bank (Equitable Bank) — Reverse mortgage comparison and rates (prime 4.70% as of October 29, 2026) (effective October 29, 2026). Checked .
  22. EQ Bank (Equitable Bank) — Reverse mortgage FAQ. Checked .
  23. EQ Bank (Equitable Bank) — Reverse mortgage advances. Checked .
  24. EQ Bank (Equitable Bank) — How a reverse mortgage works. Checked .
  25. Home Trust Company — Reverse mortgage: EquityAccess, EquityAccess+ and EquityAccess Boost (rates table dated 10/29/2026; sold through mortgage brokers) (effective October 29, 2026). Checked .
  26. Bloom Finance Company — Bloom reverse mortgage. Checked .
  27. Bloom Finance Company — Rates and fees (effective November 1, 2026). Checked .
  28. Bloom Finance Company — FAQs. Checked .
  29. OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
  30. Bank of Canada — Target for the overnight rate (series V39079): 2.50% from October 29, 2026 (effective October 29, 2026). Checked .
  31. Government of Ontario — Retail sales tax on insurance premiums. Checked .
  32. Revenu Québec — Insurance premium tax rate harmonized with the QST (effective April 9, 2026). Checked .
  33. Government of Saskatchewan — PST Bulletin PST-73: Insurance contracts (effective April 1, 2020). Checked .
  34. Justice Laws — Interest Act, R.S.C. 1985, c. I-15, s. 6. Checked .
  35. Government of British Columbia — Property transfer tax. Checked .
  36. Government of British Columbia — First time home buyers' exemption (effective April 1, 2024). Checked .
  37. Government of British Columbia — Newly built home exemption (effective April 1, 2024). Checked .
  38. Government of Ontario — Calculating land transfer tax. Checked .
  39. Government of Ontario — Land transfer tax refunds for first-time homebuyers. Checked .
  40. City of Toronto — Municipal land transfer tax rates and fees (effective April 1, 2026). Checked .
  41. City of Toronto — MLTT rebate opportunities (first-time purchasers). Checked .
  42. LégisQuébec — Act respecting duties on transfers of immovables (D-15.1), s. 2. Checked .
  43. Gouvernement du Québec — Transfer-duty brackets for 2027 (effective January 1, 2027). Checked .
  44. Ville de Montréal — How property transfer duties are calculated (effective January 1, 2026). Checked .
  45. Government of Manitoba — Land transfer tax. Checked .
  46. Government of New Brunswick — Real Property Transfer Tax Act, s. 2. Checked .
  47. Government of Nova Scotia — Municipal deed transfer tax rates (effective July 1, 2026). Checked .
  48. Government of Nova Scotia — Non-resident deed transfer tax changes (effective April 1, 2025). Checked .
  49. Government of Prince Edward Island — Real Property Transfer Tax Act. Checked .
  50. Government of Newfoundland and Labrador — Registry of Deeds schedule of fees. Checked .
  51. Government of Alberta — Land Titles and Surveys common documents fee schedule (effective October 1, 2026). Checked .
  52. Saskatchewan Registry Services (ISC) — Land titles fees table (effective April 15, 2026). Checked .
  53. City of Toronto — Property tax rates and fees (2026). Checked .
  54. City of Vancouver — Residential property tax rates (2026). Checked .
  55. City of Calgary — How your property tax bill is calculated (2026). Checked .
  56. City of Edmonton — Property taxes (2026 rates). Checked .
  57. Ville de Montréal — Taux de taxes pour 2026. Checked .
  58. CGTSIM — Understanding school tax (2026-27 rate). Checked .
  59. City of Winnipeg Assessment and Taxation — Property tax bills (2026 mill rates). Checked .
  60. City of Winnipeg Assessment and Taxation — Answer guide: residential portioning (45%). Checked .
  61. Halifax Regional Municipality — Tax rates (2026/27). Checked .
  62. City of Ottawa — Property tax estimator. Checked .
  63. OSFI — Guideline B-20: Residential mortgage underwriting practices and procedures. Checked .