A reverse mortgage has two kinds of cost: a few one-time fees to set it up, and interest that adds to the balance for as long as you have it. The fees are small and easy to list. The interest is the cost that matters, so this guide spends most of its time there, using a typical Milton home as the example.
What are reverse mortgage rates for Milton homes right now?
The lenders’ advertised 5-year fixed rates ran from 6.23% to 6.94% when reversemortgagebroker.ca last checked them, on October 2, 2026. No lender prices Milton differently from anywhere else in Ontario, so a home on Main Street gets the same published rates as one in a big city.
There are exactly four reverse mortgage lenders in Canada: HomeEquity Bank (CHIP), Equitable Bank, Home Trust and Bloom. Their rates differ and move during the year. Reverse mortgage rates are higher than regular bank mortgage rates, and in exchange there are no required monthly mortgage payments.
Most people pick a 5-year fixed term. When a term ends, the rate resets to the lender’s rate at that time. Nothing is due, and you don’t reapply.
What are the one-time costs?
All four lenders’ set-up costs come to about $2,000 to $3,500 in total, including your own lawyer.
| Cost | Typical amount | When it’s paid |
|---|---|---|
| Lender set-up fee | $795 to $1,795 | Added to the mortgage, not paid up front |
| Appraisal | Usually about $350 (lenders publish $300 to $600) | Before approval, or settled at closing by some lenders |
| Independent legal advice (ILA) | About $800 to $1,200 in Ontario | To your own lawyer |
| Paying off an existing mortgage or HELOC | Usually $300 to $400 discharge fee | At closing |
| The broker | $0 | Never |
Approximate costs across all four Canadian reverse mortgage lenders. A HELOC is a home equity line of credit.
The legal figure surprises people. A lender’s paperwork may show $300 to $500 for independent legal advice, but an Ontario lawyer usually charges $800 to $1,200 for it. Every reverse mortgage needs it, and it’s the one meeting you have in person, with a lawyer you choose.
The set-up fee is added to the balance, so it earns interest along with the rest. If you have a mortgage now, the discharge fee only applies once, when the old one is paid off at closing.
How does reverse mortgage interest add up?
The interest is compounded twice a year, just as on a regular bank mortgage. The difference is where it goes. Instead of leaving your bank account each month, it’s added to what you owe. Next time, interest is charged on that larger balance.
At 6.44%, compounding twice a year works out to about 6.54% a year. On $200,000, the first year adds about $13,087 of interest. You pay none of it month to month, but it grows the balance.
A worked example on a Milton home
Say a Milton homeowner, 70, owns a home worth $861,600. That’s the TRREB MLS® Home Price Index benchmark for all Milton home types in September 2026. At 70, the most this home could qualify for is about $455,000. The homeowner takes $200,000.
This illustration uses the same assumptions as the Milton calculator: interest at 6.44% compounded twice a year, and the home’s value growing 4.5% a year. It leaves out the set-up fee and assumes no payments are made.
| Year | What’s owed | Home value at 4.5% growth | Equity left | Equity left if the value never grows |
|---|---|---|---|---|
| Start | $200,000 | $861,600 | $661,600 | $661,600 |
| 5 | $274,580 | $1,073,710 | $799,131 | $587,020 |
| 10 | $376,970 | $1,338,038 | $961,068 | $484,630 |
| 15 | $517,542 | $1,667,439 | $1,149,897 | $344,058 |
Illustration only, not a quote. What’s owed = $200,000 × (1 + 0.0644 ÷ 2) raised to twice the number of years. Home value = $861,600 × 1.045 raised to the number of years. Home value from TRREB, September 2026.
Equity is not certain to shrink. The balance grows with interest, but in many years the house gains value too, which can cancel out part or all of it. It’s not guaranteed, though: TRREB’s Milton benchmark fell 4.83% in the year to September 2026. That’s why the last column shows a home that never gains a dollar.
How can you keep the interest cost down?
Take only what you need. Interest is charged only on money you actually take, not on the full amount you qualify for. In the example above, taking $100,000 instead of $200,000 would halve every figure in the “What’s owed” column.
You can also take the money in pieces. Monthly deposits, or a smaller amount now and more later, mean less money earning interest in the early years. Some lenders charge a small fee or a different rate on later amounts, so that’s worth weighing too.
Can you ever owe more than your Milton home is worth?
No. However long the loan runs, what you repay is capped at the home’s value when the mortgage comes due, on the condition that the tax, insurance and upkeep are looked after. All four lenders give this promise, which is typically called the no negative equity guarantee (Bloom has its own name for it).
No monthly mortgage payment is required. You still pay the property tax and insurance and look after the house, and doing that is what keeps the promise in place. For help with the tax side, see Milton property tax for seniors.
What does it cost to pay a reverse mortgage off early?
You can repay a reverse mortgage at any time. Paying it off in the first years, including by selling the home, can bring a charge. The shape is similar across lenders, though each sets its own schedule:
- In the first years, the charge is either a percentage of the amount repaid or a few months’ interest. It’s highest in year one and drops each year.
- After about year 3, it’s usually around three months’ interest.
- It falls to nothing by year 5 at some lenders and by year 10 at others.
- If the mortgage is repaid after the last borrower’s death, no early repayment charge applies.
Some lenders let you repay up to 10% a year with no charge. A move to long-term care can reduce the charge at some lenders, and you can read more about that in long-term care in Milton. Which schedule fits you depends on how long you expect to stay, which is part of what Richard weighs.
Do you get a better rate by going straight to a lender?
No. Going direct to a lender doesn’t get you a lower rate. Richard’s help costs you nothing, because the lender you pick pays his brokerage once the mortgage funds. All four lenders pay the brokerage the same, so his advice isn’t tied to any one of them.
A broker can also reach things you can’t by phoning around. Some reverse mortgage products are offered only through brokers. And a broker can sometimes get the lender’s set-up fee reduced.
A single lender can only show you its own mortgage. Richard compares every reverse mortgage lender in Canada for your home and emails you the best deal, with its rate, set-up fee and early repayment rules explained.
What does the free estimate show you?
The estimate takes about 90 seconds and puts a first figure on your screen. Getting it doesn’t affect your credit. Your credit is checked once, later, if you apply.
In his first email, Richard sets out your likely maximum and the lenders that suit you, then asks what amount you’d like. It covers the rate, the one-time costs and how the balance could grow on your home. It all happens by email, phone or video call, and you can include your children on the emails.
You get a recommendation based on your situation, even if it’s not a reverse mortgage. If moving is on your mind too, downsizing in Milton shows what selling and buying here costs.
The bottom line
A reverse mortgage in Milton costs about $2,000 to $3,500 to set up, then interest that adds to the balance twice a year. How much equity you keep depends on how much you take, how long you keep the mortgage and how your home's value changes. The Milton reverse mortgage calculator shows the growth for your own numbers, and Richard's estimate shows the real rates for your home.
When you want a figure for your own house, start the free Milton estimate. Nobody will push you to go ahead.