Eliminating a remaining mortgage payment
House-rich, cash-flow-poor. The home is affordable. The payment isn't.
The person
- Retired couple, South Surrey home worth roughly $1.4M
- $225,000 still owing on a conventional mortgage
- $1,500–$1,800 per month going to that payment
- Pension income covers the basics and little else
The problem
Selling would end the payment, but it would also end the neighbourhood, the doctors, the friends and the house they know. They do not want to move — they want the payment to stop.
Use part of the available reverse mortgage to pay out the existing conventional mortgage. The required monthly payment disappears. The reverse-mortgage balance and its interest grow instead.
Your home may be affordable. Your mortgage payment may not be.
The numbers we'd put in front of you
- Current monthly mortgage payment
- New required payment — typically $0
- Projected reverse-mortgage balance at 5, 10 and 15 years
- Estimated remaining equity at each of those points
Strong fit when
- Planning to stay in the home for several more years
- Cash flow matters more than maximizing the estate
- Comfortable with a balance that grows while they live there
Weak fit when
- Already expecting to sell within one or two years
- Maximum inheritance is the top priority
The honest caveat
The $1,700 a month is not a saving. The payment moves out of the monthly budget and into the home's future equity. We show both sides before anyone signs anything.
Before you assume this is the answer
If you fit this situation — or any of the others in the library — a reverse mortgage is one option, not the option. Because Tyler is licensed as both a mortgage broker (MB611612) and a realtor through Engel & Völkers, we'll also model what selling and rightsizing would leave you with, so you can see every available route and choose the one that makes the most sense to you. Run both below.
Model this: Eliminating a remaining mortgage payment
Because Tyler is licensed as both a mortgage broker and a realtor, we can show you the borrow-and-stay path and the sell-and-rightsize path on the same screen — including the selling costs, property transfer tax and moving costs most reverse-mortgage calculators quietly leave out.
Reverse mortgage
Illustrated at 7.99% — CHIP Max 5-year fixed, effective July 3, 2026. Semi-annual compounding, not in advance.
Downsize
Friction cost of moving: $106,600 in costs you never get back — plus the neighbourhood, the doctors and the stairs you already know.
Reading this honestly
On these assumptions, selling leaves roughly $15,250 more on the table after 10 years. That's the price of staying — and for a lot of people it's worth paying. The question is whether it's worth it to you. Change the appreciation rate and the replacement price — the answer moves, and knowing which way it moves is the whole point.
Educational estimate only — not a pre-approval, not an offer of credit, and not a market valuation. Reverse mortgage rates, qualifying amounts and terms are confirmed only through a full application, appraisal and independent legal advice. Downsizing figures use typical South Surrey / White Rock selling costs and current BC property transfer tax rates.
Educational information only. Not a pre-approval and not advice about your specific circumstances. Amounts, rates and eligibility are confirmed only through a full application, appraisal and independent legal advice.
If you fit one of these buckets, you deserve to see every option — not just the one that pays us.
Tyler Waldron is licensed as both a mortgage broker (MB611612) and a realtor through Engel & Völkers. So alongside any reverse mortgage scenario, we'll also model what selling and rightsizing would actually leave you with — selling costs, property transfer tax, moving costs and all. Same advisor, both sides of the math, and no pressure to pick either one.