A reverse mortgage lets Alberta homeowners aged 55 or older convert part of their home equity into tax-free cash without selling, moving, or making monthly payments. For Calgary and Edmonton seniors sitting on $400K-$700K of equity in a paid-off or low-balance home, it can solve a real cash-flow problem — but it is also one of the most expensive ways to borrow in Canada. Here is the honest 2026 picture. The Two Lenders That Matter in Alberta Only two federally regulated lenders offer true reverse mortgages in Canada: HomeEquity Bank — CHIP Reverse Mortgage — by far the largest, available through brokers and direct. Equitable Bank — Flex Reverse Mortgage — generally 0.20%-0.50% cheaper rates, slightly more conservative loan-to-value. Credit-union products and "private reverse mortgages" exist but are rare in Alberta and usually inferior on cost. 2026 Rates and Maximum Loan Amounts As of early 2026: 5-year fixed reverse mortgage: ~6.49%-6.99% 1-year fixed: ~7.99%-8.49% Variable: ~7.49% By comparison, a standard 5-year fixed mortgage is about 4.39% and a HELOC is about 6.45%. The reverse mortgage costs roughly 200 bps more than a HELOC. Maximum loan amount is age-driven: Age 55: ~25% of home value Age 65: ~35% of home value Age 75: ~45% of home value Age 85+: up to ~55% of home value For an Edmonton home worth $550,000 owned by a 70-year-old couple, the maximum CHIP loan is roughly $220,000. How the Math Compounds No payments are required, so interest accrues on interest. A $200,000 reverse mortgage at 6.79% compounded semi-annually grows to: 5 years: ~$278,000 10 years: ~$386,000 15 years: ~$537,000 20 years: ~$745,000 If the home appreciates at 3% per year, $550,000 becomes ~$994,000 in 20 years — so the equity left for heirs is ~$249,000 (versus $550,000 today). The bank guarantees you will never owe more than the home is worth at sale. [CTA] Set-Up Costs (Alberta-Specific) Appraisal: $400-$600 Independent legal advice: $500-$800 (mandatory in Alberta) Closing/admin fee: ~$1,795 (CHIP) or ~$1,795 (Equitable) Title insurance: ~$300 Total set-up: roughly $3,000-$3,500. Payout Options Lump sum at funding Scheduled advances — monthly or quarterly income stream (Equitable only) Initial advance + future draws within an approved limit Better Alternatives to Consider First A good Alberta broker runs all of these before recommending a reverse mortgage: HELOC at 6.45% — far cheaper, but requires income to qualify and monthly interest payments Refinance to a 30-year amortization at 4.39% — drops payment dramatically if there is still a mortgage balance Sell, downsize, rent — often the largest net-worth improvement; sell a $600K Edmonton bungalow, buy a $400K condo, free up $200K Manulife One / readvanceable mortgage — interest at prime − 0.50% with flexibility, requires income Family loan — a private mortgage from adult children at 4%-5% can beat the bank by hundreds of thousands over 15 years When a Reverse Mortgage Makes Sense It genuinely fits when all of these are true: The senior wants to stay in the home for life (not 3-5 years) Income does not qualify for a HELOC or refinance Family is informed and supportive Cash is needed for in-home care, home modifications, or to eliminate higher-cost debt When to Walk Away Avoid a reverse mortgage if: The home will likely be sold within 5 years (set-up costs do not amortize) The senior wants to leave the home to heirs intact A HELOC or refinance would qualify The funds are for a high-risk investment or to lend to family A reverse mortgage is a tool, not a strategy. For most Alberta seniors with real equity and real cash-flow problems, a 30-year refinance at 4.39% or a HELOC at 6.45% beats it by a wide margin. If neither qualifies and staying in the home for 10+ years is the goal, a reverse mortgage from CHIP or Equitable is a legitimate option — just go in with the math and the alternatives in writing. Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357
