Reverse mortgage: When is turning your house equity into cash a good option?

For many Canadians over 55, a reverse mortgage is one way to quickly raise cash without worrying about repayment schedules–until you sell your home, or it becomes part of your estate.

There are pros and cons to a reverse mortgage. If you need extra money to fund a special project or holiday in your retirement, and you have no children, it can provide a way to use the equity in your home to achieve your goals–no matter what your income is.

A reverse mortgage can be a good idea for the following reasons:

However, reverse mortgages come with some disadvantages that can impact you and your beneficiaries:

For personal advice on whether a reverse mortgage is the right step for you, contact your financial advisor.

Always seek advice from your financial planner. If you are a member of one of the BC Public Sector Pensions plans, you can see what the Pension Corporation says about your situation. Their pages provide a detailed summary of your options.