Education
Reverse Mortgage Closing Costs in Canada
Every fee you'll encounter at closing — what each cost covers, typical ranges, and how to compare lenders on total setup cost.
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 CHIP, Equitable, Bloom, and Home Trust. Optional for Fraction. 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.
Related guides
Frequently Asked Questions
How much are reverse mortgage closing costs in Canada?
Typical reverse mortgage closing costs in Canada range from $3,500 to $7,500+, including lender setup fees ($995–$2,995), appraisal ($350–$550), legal fees ($800–$1,500), and Independent Legal Advice ($300–$700). Most fees can be rolled into the mortgage.
Can reverse mortgage closing costs be added to the loan?
Yes. Most Canadian reverse mortgage lenders allow setup fees, appraisal, legal, and ILA costs to be deducted from or added to the initial advance, so borrowers often pay nothing out of pocket at closing.
What is Independent Legal Advice (ILA) and why is it required?
ILA is a mandatory meeting with a lawyer not connected to the lender or broker. The lawyer explains the mortgage terms and confirms you understand them. CHIP, Equitable Bank, Bloom Finance, and Home Trust require ILA before funding — typically costing $300–$700. ILA is optional for Fraction.
Which lender has the lowest setup fee?
Equitable Bank and Home Trust are tied for the lowest setup fee at $995. CHIP setup fees range from $1,795 to $2,995 depending on product. Bloom charges approximately $1,795.