Home Equity Projection

Project your home value, loan balance, and remaining equity — year by year, for any timeframe you choose.

Today15-Yr Forecast
Home Value$560,000$872,462
Loan Balance$25,000$66,165
Remaining Equity$535,000$806,297
ValueLoan

What this Projection Shows You

This tool is for Canadian homeowners aged 55 and over who are weighing a reverse mortgage. Set your home value, the funds you want, an expected appreciation rate, an interest rate and a forecast period, and it projects three things year by year: your estimated future home value, your projected loan balance, and the equity you would have left.

It answers a different question from our Reverse Mortgage Calculator, which estimates your borrowing power. That one tells you how much you could get. This one tells you what happens to your equity in the years that follow. Most people use them in that order.

The goal is to help you plan ahead and compare scenarios. Every figure is an estimate for illustration and education only. It is not financial, legal, or tax advice, nor a mortgage approval, appraisal, or lending commitment.

How the Numbers Are Calculated

This tool projects your estimated future home value, reverse mortgage balance, and remaining equity across your chosen time horizon.

Projected Loan Balance

Your reverse mortgage balance increases as interest accrues on the amount borrowed. Because regular payments are not required, interest is added to the balance rather than paid down.

Semi-Annual Compounding

Interest is assumed to compound twice per year, the most common structure for lump sum reverse mortgages in Canada. Some products, including certain variable-rate mortgages, may compound monthly.

Constant Interest Rate

The projection applies the rate you enter for the full period. In reality, rates typically reset with market conditions and lender policies at least every five years.

Exact Calendar Years

The calculation uses exact calendar years, including leap years, so the projection reflects elapsed time as precisely as possible.

These methods are simplifications used for illustration. Your actual results may differ and should not be relied upon as a forecast of your real-world outcome.

Key Assumptions and Limitations

This projection tool is for planning and education. Keep these assumptions in mind:

  • The default 3% appreciation is a planning assumption, not a prediction. We chose 3% because it sits within the Bank of Canada’s 1% to 3% inflation-control range, and it is reasonable to assume that home values, on average, may keep pace with inflation over the long run. For context, CMHC data on average absorbed homeowner and condominium unit prices in larger Canadian centres shows appreciation of roughly 5.72% per year between May 2020 and May 2026 (figures as of May 2026). Past performance does not predict future results, and you can adjust this rate to model your own scenarios.
  • Your home value grows at a steady rate. Your home value is assumed to grow each year at the rate you enter. If that rate holds, your property value may outpace the rising loan balance. Property values can fall as well as rise, so treat long projections as a range.
  • The forecast horizon is illustrative. A reverse mortgage has no fixed due date. The 15-year default is an illustration point, not a deadline.
  • A one-time lump sum is assumed. Additional or recurring advances would change how the balance grows.
  • The funds shown are not guaranteed. Eligibility depends on borrower age, property value, type, and location. The tool starts at $25,000 and caps desired funds at 59% of home value. Use our Reverse Mortgage Calculator to estimate how much you could qualify for.

Glossary of Terms Used

Remaining Equity
The estimated difference between your home’s future value and projected reverse mortgage balance.
Home Appreciation
The assumed rate at which your property value grows over time. Property values are never guaranteed.
Interest Rate
The rate used to estimate how your outstanding loan balance grows as interest is added over time.
Semi-Annual Compounding
Interest calculated and added to your balance twice per year, the most common method for lump sum reverse mortgages in Canada.
Time Horizon
The number of years used in the forecast. It is a planning illustration, since a reverse mortgage has no fixed end date.
Projected Loan Balance
The estimated future amount owed, including the original advance plus accrued interest.
Lump Sum Advance
A single, one-time withdrawal of reverse mortgage funds rather than gradual or recurring income payments.
FAQ

Frequently Asked Questions