What is a reverse mortgage?

Author: Marisa Nguyen Mortgage Consultants Group |

Reverse mortgages have experienced huge growth over the last few years. This is partly due to the startling reality that almost a third of Canadians are going into retirement with no savings. Reverse mortgages are increasingly being used to boost retirement income. But what is a reverse mortgage, exactly?

A reverse mortgage is a loan that allows you to access some of your home’s equity. Many retired Canadians are house rich but cash poor; they’re struggling financially while sitting on an investment worth hundreds of thousands of dollars. A reverse mortgage allows you to cash in some of that investment, in the form of tax-free money in either a lump sum amount or regular advances – all depending on what suits you and your needs. To help you better understand, here's a video explaining what a reverse mortgage is.

Try watching this video on www.youtube.com