What is a reverse mortgage?

A reverse mortgage is a financial tool used to access equity that a homeowner has built up in their home.  It allows homeowners over 55 years of age with little to no income to continue living in their home while using their home as a source of income.  

With a reverse mortgage, a percentage of the value of a home is converted into cash and can be converted into an annuity, which provides the home owner with a gauranteed income for a specific period of time.  Unlike a regular mortgage, no payments need to be made on a reverse mortgage.

There are currently four providers of reverse mortgages in Canada, and not all providers offer the same rates, options, and amounts based on the amount of equity in your home, so a licensed mortgage broker can present you with options from all four providers so that you can make an educated decision on which provider is best for you.  What's great, is there is no fee for the broker's service!