Amortization Schedule
View a detailed year-by-year breakdown of how your reverse mortgage balance grows alongside your home value. Modeled using the semi-annual equivalent commonly disclosed under the Interest Act.
What these numbers mean.
What this calculator shows
Year-by-year balance growth, interest accrual, and projected remaining equity.
What does this mean? It helps you visualize long-term compounding and choose a draw amount that matches your comfort level.
Reading the Amortization Schedule
Each row shows one year: the opening balance, the interest accrued during that year, the closing balance, your projected home value, and your remaining equity (home value minus loan balance). Use this table to understand the long-term trajectory of your reverse mortgage.
Why the balance grows faster in later years
Because interest compounds on an ever-growing balance, the dollar amount of interest added each year increases over time even if the rate stays constant. In Year 1, interest on a $200,000 loan at 7% is approximately $14,000. In Year 10, after compounding, the same 7% rate generates approximately $27,000 in interest — on a balance that has grown to roughly $394,000. This is why starting with the smallest loan that meets your needs is the most cost-effective approach.
Semi-annual compounding under the Interest Act
The Interest Act requires Canadian mortgage lenders to disclose a yearly or semi-annual not-in-advance equivalent. That disclosure rule does not require the loan balance to compound only twice a year. Calculators on this site use the common semi-annual equivalent: A = P(1 + r/2)^(2t). The effective annual rate is slightly higher than the nominal rate — at 7% nominal, the effective annual rate is 7.1225%.
The no-negative-equity guarantee
In scenarios where the loan balance exceeds your projected home value, the amortization schedule will show negative equity. However, all four regulated Canadian reverse mortgage lenders guarantee that you (or your estate) will never owe more than the fair market value of your home at the time of sale. The lender absorbs any shortfall. This protection is called the no-negative-equity guarantee.
Dig deeper into the numbers
For a full explanation of how compounding works in Canadian reverse mortgages, read how reverse mortgages work. To see what these numbers mean for your estate, explore our estate impact projections. Rates vary significantly by lender — compare the four reverse mortgage lenders plus Fraction to find the lowest rate for your situation.
This amortization schedule is for illustrative purposes only. Interest is calculated using semi-annual compounding (A = P(1 + r/2)^(2t)) as the disclosed Interest Act equivalent. Home appreciation is estimated and actual values will vary. CHIP, Equitable, Bloom, and Home Trust include a no-negative-equity guarantee — you will never owe more than the fair market value of your home. Fraction does not include this guarantee. Consult a licensed mortgage broker for personalized advice.
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