A living inheritance for children
Your children may need help at 35 more than they will at 65 — with safeguards.
The person
- Parents in a mortgage-free home worth roughly $1.6M
- An adult child paying high rent and unable to assemble a down payment
- Considering a gift of around $150,000
The problem
The inheritance arrives decades after the moment it would have changed the child's life. But an early gift is funded by compounding interest on the parents' home.
Gift a defined amount from home equity, after modelling the estate impact and confirming the parents' own future is fully protected.
Provide part of their inheritance today, while you are alive to see the difference it makes.
The numbers we'd put in front of you
- Cost of the gift over 10, 15 and 20 years with compounding
- Estate value with and without it
- Whether a smaller gift achieves the same result
- Whether the parents' own care needs remain funded
Strong fit when
- Substantial equity and a fully funded retirement
- Gift versus loan is documented, with independent legal advice
- All affected family members are part of the conversation
Weak fit when
- The gift rescues a child from a purchase they cannot afford anyway
- The parents may need that equity for their own care
- Siblings have not been considered
The honest caveat
Helping the kids is not automatically wise. Sometimes this is parents compromising their own retirement. We will say so if that is what the numbers show.
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: A living inheritance for children
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: $134,200 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 $121,417 more on the table after 15 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.