Creating a monthly cash-flow supplement
Not a lump sum — an extra $1,000 to $1,500 a month, drawn as needed.
The person
- CPP, OAS and a small pension
- Necessities are covered; discretionary spending and emergency savings are not
- Inflation has quietly removed the margin
The problem
A large lump sum is the wrong tool. It starts accruing interest immediately and then sits in a chequing account earning nothing.
Scheduled advances — monthly or quarterly, depending on lender and product — convert part of the equity into cash flow without a required mortgage payment, and without borrowing more than is actually being used.
You may not need a large lump sum. You may need an extra $1,200 a month.
The numbers we'd put in front of you
- Advance amount versus lump-sum equivalent
- Interest accrued under each approach over 10 years
- Remaining equity under both
- When the approved amount would be fully drawn
Strong fit when
- A modest, ongoing shortfall rather than a one-time need
- Long expected time in the home
Weak fit when
- A single, immediate, large expense
- A structurally unaffordable household budget
The honest caveat
These advances are loan proceeds, not income. We call them scheduled equity advances or a monthly cash-flow supplement — never guaranteed retirement income.
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: Creating a monthly cash-flow supplement
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: $99,700 in costs you never get back — plus the neighbourhood, the doctors and the stairs you already know.
Reading this honestly
On these assumptions, staying and borrowing leaves roughly $50,655 more after 15 years, largely because a larger home keeps appreciating and the move costs are gone forever. That gap shrinks fast if the market flattens. 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.