What would it cost to get out early?
If you sell, move or repay in the first years of the loan.
To repay after 3 years$249,506$242,239 owed + $7,267 charge
- Interest so far
- $42,239
- Prepayment charge
- $7,267
- 3% of the amount repaid
- Set-up costs already paid
- $3,070
- Total cost of the loan so far
- $52,576
When the charge is usually waivedHomeEquity Bank has written that there is no charge if the last surviving borrower dies, and the charge is halved if the last borrower moves into a nursing home (2019 article; confirm in your contract).
Estimate, not advice. Educational estimate only, not financial, mortgage, tax or legal advice. Lenders, insurers and governments set their own rules and can change them; confirm with a licensed professional before you decide.
Repaying after 3 years: $242,239 owed plus a $7,267 prepayment charge.
| Year | Owed | Charge | Total to repay |
|---|---|---|---|
| 1 | $213,191 | 5% · $10,660 | $223,850 |
| 2 | $227,251 | 4% · $9,090 | $236,341 |
| 3 | $242,239 | 3% · $7,267 | $249,506 |
| 4 | $258,215 | 3 mo. interest · $4,190 | $262,405 |
| 5 | $275,246 | 3 mo. interest · $4,466 | $279,711 |
| 6 | $293,399 | 3 mo. interest · $4,760 | $298,159 |
| 7 | $312,749 | 3 mo. interest · $5,074 | $317,824 |
| 8 | $333,376 | 3 mo. interest · $5,409 | $338,785 |
Assumptions & sources
Assumptions
- Charge in the year you repay: a percentage of the amount repaid (HomeEquity Bank, years 1–3) or months of interest on it. Your contract defines the exact formula; this assumes you repay the whole balance.
- HomeEquity Bank, current contracts: 5% of the amount repaid in year 1, 4% in year 2, 3% in year 3, then 3 months' interest.
Sources
- HomeEquity Bank — Prepayment charge calculator (contracts 32–34). Checked .
- HomeEquity Bank — Reverse mortgage closing costs (blog, 2019; page modified 2026-03-23) (effective October 2, 2019). Checked .
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Cost of repaying early · Powered by ReverseMortgaged.ca · MITEY