Inheritance & Estate Impact Calculator
The question every family asks: 'What is left for my kids?' See the net estate with vs. without a reverse mortgage, per-heir, at the horizon when the estate would actually settle.
What these numbers mean.
What this calculator shows
Net estate and per-heir inheritance after a reverse mortgage vs. leaving the home untouched — and the year the loan would theoretically exceed the home value (capped by the no-negative-equity guarantee).
What does this mean? Interest compounds on the loan while the home appreciates. The gap between those two curves is what heirs inherit.
How to Talk About This With Family
The two biggest variables are how long the loan is outstanding and home appreciation. A 3% vs. 5% appreciation assumption changes the 20-year inheritance by six figures. This calculator lets your family test those scenarios together — set a horizon that matches life expectancy planning (e.g., age 70 → 20-year horizon = age 90) and see the per-heir impact.
The no-negative-equity guarantee
All four regulated Canadian reverse mortgage lenders — CHIP, Equitable Bank, Bloom, and Home Trust — guarantee the estate never owes more than the fair market value of the home at sale. If the compounding loan ever exceeds the home value on paper, the lender absorbs the shortfall. The 30-year table flags that crossover year where the guarantee matters. Read estate impact explained and the 95% rule / NNEG explainer.
Why not just use the equity projection?
The equity projection calculator shows loan vs. home over time. This calculator translates that same math into inheritance per heir and the explicit cost to the estate — the language families use when deciding whether to proceed, downsize, or use a family loan instead.
Related planning tools
If you are weighing a sale instead, run the downsizing vs. reverse mortgage calculator. If you need income now, compare lump sum vs. monthly payout break-even. Worried about OAS/GIS? The benefits impact calculator shows that reverse mortgage proceeds are not taxable income and do not affect OAS/GIS/CPP.
Illustrative only. Uses semi-annual compounding A=P(1+r/2)^(2t) and constant appreciation. Excludes rolled-in setup fees ($995–$2,995), ILA ($300–$700), property taxes, maintenance, and tax effects — all of which affect net estate. Probate and executor costs not modelled. Consult a licensed mortgage broker and your estate lawyer.
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