Calculators
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.
All fees shown below are approximate and can typically be rolled into the mortgage
Notes:
- - Setup fee ranges from $1,795 to $2,995 depending on loan size
- - Appraisal arranged and paid by CHIP, then charged to borrower
- - ILA (Independent Legal Advice) is mandatory
Notes:
- - Lowest setup fee in the market ($995)
- - Broker-exclusive — must go through a mortgage broker
- - ILA (Independent Legal Advice) is mandatory
Notes:
- - All-in processing fee of approximately $2,300
- - Bloom pays for the appraisal (included in processing fee)
- - ILA (Independent Legal Advice) is mandatory
Important notes about fees
- - All setup fees can typically be rolled into the reverse mortgage, meaning no out-of-pocket cost at closing
- - Independent Legal Advice (ILA) is required by all lenders to ensure you understand the terms
- - Legal/notary fees for the mortgage registration are additional (typically $800-$1,500)
- - Some lenders may waive or reduce fees for larger loan amounts
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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