Reverse Mortgage Cost Estimator
Understand the upfront costs for each lender. All fees shown can typically be rolled into the mortgage, so there is no out-of-pocket expense at closing.
What these numbers mean.
What this calculator shows
Estimated setup and closing costs by lender before funding.
What does this mean? Fee differences affect total cost over time because rolled-in fees also accrue interest.
Understanding Reverse Mortgage Setup Costs
Setup costs vary significantly by lender — from $995 (Equitable Bank and Home Trust) to $2,995 (CHIP on larger loan amounts). These fees can almost always be rolled into the mortgage, meaning there is no out-of-pocket expense at closing. However, the costs are still real — they accrue interest for the life of the loan.
What is included in setup fees?
Setup fees typically cover: lender administration, appraisal (except Bloom, which pays for the appraisal), and processing. In addition to the lender's fee, you will need to pay for Independent Legal Advice (ILA) — a mandatory legal requirement for all Canadian reverse mortgages. ILA typically costs $300–$700 depending on your province and the lawyer you choose.
The real cost of a higher setup fee
A higher setup fee doesn't just cost you the difference upfront — it also accrues interest for the life of the loan. If you pay $2,995 instead of $995, that $2,000 difference compounds at your mortgage rate for 10–20 years. At 7%, that $2,000 grows to approximately $3,940 after 10 years and $7,740 after 20 years. Factor this into your lender comparison.
Bloom's appraisal advantage
Bloom Finance covers the cost of your home appraisal — typically $300–$500. Neither CHIP, Equitable Bank, nor Home Trust covers this cost. If you are comparing Bloom's ~$2,300 setup fee against Equitable Bank's $995, subtract the appraisal cost from Bloom's total for a fair comparison.
Understanding the full picture
For a detailed breakdown of each lender's fees, rates, and features, visit our lender comparison page. Independent Legal Advice (ILA) is a mandatory cost — learn what it involves and how to find a lawyer in our ILA explained guide. When you're ready to apply, our step-by-step application guide walks you through every stage of the process.
Fee estimates are approximate and based on publicly available information as of the most recent update. Actual fees may vary based on loan amount, property location, and lender policies. Legal and notary fees for mortgage registration are not included in the estimates above. Consult a licensed mortgage broker for a detailed cost breakdown.
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