"How much can I actually get?" is the first thing most homeowners ask when they start exploring reverse mortgages. The answer depends on several factors — but the good news is that the calculation is straightforward, and you can get a reliable estimate quickly.

Age is the single biggest driver of your loan amount. The older you are, the higher the percentage of your home's value you can access. This is because older borrowers, statistically, will hold the loan for a shorter period — which reduces the lender's risk.

• At 55, you might qualify for roughly 20–25% of your home's value
• At 65, that typically rises to 30–35%
• At 75, you may qualify for 40–45%
• At 80+, some borrowers can access 50–55%

If you are applying with a spouse or partner, the lender uses the younger person's age to calculate the maximum loan amount. This protects both of you — the loan remains in place as long as either of you lives in the home.

The lender will order a professional appraisal of your property. The loan amount is calculated as a percentage of this appraised value — not the purchase price, assessed value, or your own estimate.

If your home appraises higher than expected, your maximum loan amount increases. If it appraises lower, it decreases. The appraisal is a critical step in the process.

Urban properties in major Canadian cities — Toronto, Vancouver, Calgary, Ottawa, Montreal — typically qualify for higher loan percentages than rural or remote properties. This reflects the lender's assessment of resale risk and market liquidity.

Properties in smaller cities and towns across Ontario, Alberta, and BC generally qualify well. Very rural properties, seasonal cottages, and mobile homes may have more restrictions.

These are illustrative examples based on typical lender guidelines. Your actual offer may vary.

Example 1: Couple in Hamilton, Ontario

• Ages: 68 and 65 (lender uses age 65)
• Home value: $750,000
• Estimated loan range: $225,000 – $262,500 (30–35%)

Example 2: Single homeowner in Toronto

• Age: 74
• Home value: $1,100,000
• Estimated loan range: $440,000 – $495,000 (40–45%)

Example 3: Couple in Kitchener, Ontario

• Ages: 72 and 70 (lender uses age 70)
• Home value: $620,000
• Estimated loan range: $217,000 – $248,000 (35–40%)

Example 4: Single homeowner in Burlington

• Age: 80
• Home value: $850,000
• Estimated loan range: $382,500 – $467,500 (45–55%)

If you currently have a conventional mortgage, a HELOC, or any other loan secured against your home, it must be paid off as part of the reverse mortgage process. The proceeds from your reverse mortgage are used first to clear any existing liens, and the remaining balance is yours to use as you choose.

Example:

• Home value: $700,000
• Estimated reverse mortgage: $245,000 (35%)
• Existing mortgage balance: $80,000
• Net funds available to you: $165,000

If your existing mortgage balance is close to or exceeds the reverse mortgage amount, a reverse mortgage may not make sense. A specialist can help you determine whether the numbers work.

You have flexibility in how you receive the money:

• Lump sum — receive the full amount at closing, ideal for paying off debt or a large one-time expense
• Scheduled advances — receive regular payments over time, similar to an annuity, ideal for supplementing monthly income
• Combination — take a lump sum at closing and set up scheduled advances for ongoing income
• Line of credit — draw funds as needed up to your approved limit (available with some lenders)

Interest accumulates on the outstanding loan balance. You are not required to make payments, but you can make voluntary payments at any time to reduce the balance and slow the accumulation of interest.

The loan balance grows over time. After 10 years at a 6% interest rate, a $200,000 loan would grow to approximately $358,000. However, if your home has appreciated over the same period — which is historically likely in most Canadian markets — your net equity may still be substantial.

The only way to get a precise loan amount is to go through the application process, which includes a professional appraisal. However, you can get a reliable estimate in a free consultation — no commitment required.

A licensed reverse mortgage specialist will review your age, property details, and any existing debt to give you a realistic range before you take any formal steps.

Curious what your home equity could unlock? Request a free, no-obligation conversation to get your estimate.