Q: I’ve heard I should avoid a reverse mortgage at all costs. Is that true?

A: A reverse mortgage is a type of loan that allows homeowners 55 and older to borrow money from their home’s equity (the difference between what you still owe on your mortgage and the current market value of your home) without selling the home. This is done by converting a portion of your home equity into tax-free money — the money is a loan, not income, so it doesn’t affect government benefits like Old Age Security (OAS) or the Guaranteed Income Supplement .

The loan balance, including any interest accrued, becomes due when the homeowner sells the home, moves out permanently or dies. You can qualify for a reverse mortgage even if you’re still paying off your mortgage, but the money you borrow from the revers

See Full Page