House rich, cash poor: A reverse mortgage might make sense
An option worth considering for older Canadians
Regulations have long been more stringent than they were during the industry’s early days. Nowadays, some experts say they’re an option worth considering for older Canadians who are house rich, cash poor and well aware of the pros and cons.
Reverse mortgages are available to Canadian homeowners who are 55 and older. Up to 55% of the equity built up in the home can be unlocked tax-free in a lump sum or incremental payments, usually at interest rates two to three per cent higher than what a conventional mortgage would carry.
Unlike a traditional mortgage, the loan and interest is not paid back in regular intervals. Instead, that happens when the homeowner moves, sells or dies. In the case of death, the loan and interest repayment becomes the responsibility of the homeowner’s estate.
Homeowners have some responsibilities during the life of the loan. The properties must not be allowed to fall into a state of disrepair that would decrease the value. They also remain on the hook for property taxes and homeowners insurance.
Full Read:
- canadianmortgagetrends.com
- https://www.canadianmortgagetrends.com/2026/07/house-rich-cash-poor-when-a-reverse-mortgage-might-make-sense/
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