FSRA Licensed Brokerage #13672 · Ontario only · This is informational, not a binding offer of credit.
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Inheritance Impact Calculator

See exactly how a reverse mortgage affects your kids' inheritance year by year. Adjust the sliders to model your situation. The chart updates instantly.

Your Situation

Home Value Today $1,000,000
Current estimated market value of your home
Reverse Mortgage Amount $250,000
How much you plan to borrow as a lump sum
Your Age Today 70
Younger spouse's age, if applicable
Reverse Mortgage Rate 8.0%
Typical Canadian rates: 7–9% in 2026
Home Appreciation 3.0%
Long-term Ontario average: 4–5% annually
Years From Now 20
When you expect the home to be sold
Voluntary Annual Payment $0
Optional: pay interest each year to slow compounding
Adjust the sliders to see how each factor affects your kids' inheritance.

Projected Outcome

Home Value
$1.81M
at year 20
Loan Balance
$1.17M
at year 20

Strategies to Preserve More

Pay annual interest to flatten the curve

Move the "Voluntary Annual Payment" slider up to see how much inheritance you save by paying just the interest each year.

Take less than the maximum

Lower the "Reverse Mortgage Amount" slider — even a $50,000 reduction compounds to big inheritance gains.

Use the Equitable Flex product

Draw funds only as needed. Interest accrues only on what you actually withdraw, not the full credit line.

Want a Personalized Inheritance Plan?

A free 15-minute call gives you exact numbers for your situation, plus alternatives that may preserve more inheritance. Adult children welcome to attend.

Book a Free Family Consultation

How to Read This Calculator

This tool projects your home's value, the reverse mortgage balance, and the remaining inheritance over time. It uses the same compounding math as the actual lender contracts, so the numbers are realistic — not marketing.

The single biggest factor: how long the loan stays in place. A reverse mortgage held for 5 years has minimal inheritance impact. One held for 25 years can dramatically reduce what you leave behind.

The second biggest factor: home appreciation. If your home appreciates faster than the loan compounds, your kids still inherit substantial equity even after a long loan term. The realistic Ontario long-term average is 4–5% appreciation — try moving that slider to see the difference.

The third biggest factor: voluntary payments. Most borrowers don't realize they CAN make voluntary payments. Even paying just the annual interest keeps the principal flat, eliminating compounding entirely. Move the "Voluntary Annual Payment" slider to see this in action.

For a deeper explanation of inheritance strategies, see our article Reverse Mortgages and Your Inheritance: What Your Kids Need to Know.