Is a reverse mortgage right for you?

Before you decide if a reverse mortgage is right for you let’s look at some of the advantages and disadvantages.


  • Payments from a reverse mortgage are tax-free income, so income-tested benefits such as OAS and GIS will not be affected.
  • Reverse mortgages do not have to be repaid until you sell your home or you or your surviving partner pass away.
  • The freedom to eliminate monthly payments can be a benefit for stretched budgets.
  • You can repay the loan at any time.
  • If the investment market takes a downturn, a reverse mortgage could fill the gap until your investments stabilize or reach maturity.
  • The amount you owe can never exceed the value of your property.
  • You and your beneficiaries will not be responsible for any shortfall if interest rates increase and housing values drop.
  • Funds can be received as a lump sum, regular payments or a combination of lump sum and regular payments.


  • While your home may continue to appreciate in value and offset some of the interest costs and loss of equity, interest will accumulate on the amount you borrow.
  • Due to higher rates of interest, reverse mortgages are more costly than conventional lines of credit or mortgages. Early payment of all or a portion of the amount borrowed could subject you to prepayment penalties.
  • Borrowing against your home will impact the amount available to pass on to your beneficiaries.
  • The amount you can borrow through a reverse mortgage varies dramatically based on geographic location, the type of housing you own, your age and gender, and the amount of your current debt. A reverse mortgage may not be an option depending on these circumstances.

Do you still want to know more?

Contact us today to and we can help you decide if the reverse mortgage is the right option for you.