Reverse Mortgage Budgeting & Sustainability Planner

About You Borrowers, horizon

Province Borrower Type

Age (Borrower 1)

Target End Age Planned Stay-in-Home (years, optional)

Tip: For couples, most reverse mortgage planning assumes the loan stays until the last borrower exits the home. Use the younger age for conservative runway planning.

Home Details Value, type, fees

Current Home Value ($) Property Type

Condo Fees (monthly $) Existing Mortgage/HELOC to Pay Out ($)

Selling Costs (% of sale price) Legal + Moving (flat $)

Reverse Mortgage Setup Rate, balance, fees

Mode Rate Type (informational)

Initial Advance (lump sum $) Upfront Costs (appraisal/legal/fees $)

Interest Rate (annual %) Admin Fee (monthly $)

Roll Upfront Costs into Loan? Compounding

Note: This tool estimates compounding using monthly effective rates. Exact lender terms can differ.

Draw Strategy Lump, staged, auto-draw

Choose Draw Strategy

Lump sum only

Planned staged draws

Auto-draw to cover shortfall

Income Monthly amounts

CPP (monthly $) OAS (monthly $)

GIS (monthly $) Employer Pension(s) (monthly $)

Investment Income (monthly $) Other Income (monthly $)

Index income to inflation? Income growth rate (annual %)

Living Expenses Essential + lifestyle

Essential expenses (monthly $) Lifestyle expenses (monthly $)

Living expense inflation (annual %) Lifestyle cut in downside (%)

Home Carrying Costs Taxes, insurance, maintenance

Property taxes (annual $) Tax inflation (annual %)

Home insurance (monthly $) Insurance inflation (annual %)

Utilities (monthly $) Utilities inflation (annual %)

Maintenance reserve (monthly $) Maintenance inflation (annual %)

Enable capital events (roof/furnace/windows, etc.)

Policy reality check: reverse mortgages generally require taxes + insurance + reasonable maintenance to be kept up. This tool flags the first year those become unaffordable in the plan.

Home Value Scenarios Base / Downside / Optimistic

Base appreciation (annual %) Optimistic appreciation (annual %)

Downside shock year 1 (%) Downside recovery after shock (annual %)

Rate sensitivity (adds to RM rate, %) Downside adds extra cost inflation? (bps)

Downside scenario applies a one-time home value shock in year 1, then a recovery growth rate afterward. Rate sensitivity is applied to all scenarios to see “higher rate” impact.

Exit & Plan B (Optional) Sell age & net proceeds

Model a sale at age (0 = none) Assume sale scenario uses which home value?

If you model a sale, the tool estimates net proceeds after selling costs and paying out the reverse mortgage.

Assumptions (How this tool works) Methodology

This calculator runs a monthly simulation from your current age to your target end age. Each month it updates cashflow, reverse mortgage draws (if applicable), reverse mortgage balance compounding, and home value.

Monthly effective interest: (1+r)^(1/12)-1
Monthly home growth: (1+g)^(1/12)-1
Costs inflate monthly using the same effective conversion.

Lender-specific penalties, exact legal terms, and underwriting guidelines vary. Use results as a planning illustration.

Full Disclaimers Important

Educational estimates only. This tool does not provide a quote, approval, or commitment from any lender. Rates, compounding, fees, and policy requirements vary by lender and may change.

Policy obligations: Reverse mortgages typically require the borrower to maintain property taxes, home insurance, and reasonable property condition. Failure to do so may constitute default.

Home values are uncertain: Appreciation/depreciation scenarios are illustrative only. Downside scenarios are not predictions.

Professional advice: Consider independent legal and financial advice before making decisions.

FSRA disclosure: This tool is presented for educational purposes. Always seek the advice of licensed professionals before making any decisions.