Payout & Break-Even Calculator
Lump sum, monthly advances, or both: see how each payout grows, the full amortization, and when the loan would catch your home value — and why the no-negative-equity guarantee means you stop owing there.
What these numbers mean.
What this calculator shows
Full amortization for your chosen payout — total cash received, loan balance, projected home value, and remaining equity year by year, plus the break-even horizon.
What does this mean? Monthly advances cost far less in interest than the same total as a lump sum, because interest only accrues as you draw.
Why Payout Type Changes Everything
A $120,000 lump sum at 6.39% owes ~$161,000 after 5 years (interest from day one on the full amount). The same $120,000 delivered as $2,000/month over 5 years owes ~$134,000 — about $27,000 less — because each advance only starts accruing interest when you receive it. This calculator makes that gap visible year by year.
Reading the break-even year
Break-even is the first year the loan balance would equal the projected home value. After that, on paper the equity is zero — but in Canada you are protected: CHIP, Equitable, Bloom, and Home Trust all include a no-negative-equity guarantee. Your estate never owes more than the home's fair market value at sale; the lender absorbs any shortfall. Fraction (shared-appreciation alternative) does not carry this guarantee.
Choosing your payout
Choose lump sum when you need to clear a mortgage, fund a renovation, or help family now. Choose monthly advances when you are replacing income — it preserves more equity for the same total received. Combo is the most common: a lump sum for the immediate need plus a monthly top-up for cash flow. Your broker can structure this within your approved LTV.
Where this fits in your plan
First check how much you qualify for in the loan estimate calculator, then return here to model how you want to receive it. To see the heir impact at your horizon, run the inheritance calculator. To view the standard year-by-year table without payout choices, see the amortization schedule. And to price the lenders against each other, use the CHIP vs Equitable comparison.
Illustrative only. Uses semi-annual compounding A=P(1+r/2)2t on opening balance; monthly advances approximated with half-year interest on new advances each year. Home appreciation is constant and hypothetical. Setup fee shown rolled into initial balance; ILA ($300–$700), taxes, insurance, and maintenance not modelled — keep them current to keep the mortgage in good standing. Rates as directional — get a broker quote for your LTV and term.
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