Closing costs
Know the cheque, the deductions, and the long-term cost.
Around $3,000 is a useful broad planning estimate for setup and closing costs in many straightforward lifetime transactions. Actual costs vary.
Common transaction costs
- Property appraisal
- Independent legal advice and closing
- Lender administration or setup fees
- Title registration and related disbursements
- Discharge costs for existing secured debt
Three numbers to keep separate
| Number | Meaning |
|---|---|
| Maximum approval | The lender’s approved advance before deductions |
| Net proceeds | What remains after required payouts and closing costs |
| Total cost over time | Setup costs plus accumulated interest and any applicable penalties |
Broker compensation
In institutional lifetime reverse-mortgage transactions, broker compensation is generally paid by the lender. That does not remove the need to ask how the broker is paid and whether any separate fee applies to your file.
Small needs deserve extra scrutiny
Fixed setup costs matter more when the amount needed is small or the expected holding period is short. Compare a HELOC, conventional secured borrowing, a family loan, tax relief, a smaller planned draw, or waiting—if waiting is financially safe.
Questions people ask next
How much may be available?
The range depends on age, property value, location, property type, lender and underwriting. Existing mortgages and secured lines of credit usually need to be paid from the advance, so maximum approval and usable proceeds are not the same thing.
Read the full explanation →What does a reverse mortgage cost to set up?
Around $3,000 is a useful broad planning estimate for setup and closing costs in many straightforward lifetime transactions, but actual appraisal, legal, lender, title and discharge costs vary.
Read the full explanation →Understand. Compare. Act.