Reverse mortgage closing costs in Canada typically total $3,500 to $7,500+, depending on lender and province. The largest components are the lender setup fee, property appraisal, legal fees, and Independent Legal Advice (ILA). Most costs can be rolled into the initial advance, meaning no out-of-pocket expense at closing for many borrowers.
Closing cost breakdown
- Lender setup fee — $995 (Equitable, Home Trust) to $2,995 (CHIP Max). Rolled into the loan.
- Appraisal — $350–$550 for most urban properties; higher for rural or complex files.
- Legal fees — $800–$1,500 for mortgage registration and closing documents.
- Independent Legal Advice (ILA) — $300–$700; mandatory for all five lenders. See our ILA guide.
- Title insurance — Often included or $200–$400 depending on province and lender.
Setup fees by lender
| Lender | Setup fee |
|---|---|
| CHIP | $1,795–$2,995 |
| Equitable | $995 |
| Bloom | ~$2,300 (processing + appraisal + ILA certificate) |
| Home Trust | $995 |
Why closing costs matter beyond day one
Fees rolled into the loan accrue interest over time. A $2,000 difference in setup fees can cost several thousand dollars in compounded interest over 15–20 years. Use the all-in cost estimator to compare total setup cost by lender, then the amortization calculator to see long-term impact.