A reverse mortgage allows homeowners 55 and older to convert a portion of their home equity into cash. Unlike a traditional mortgage, with a reverse mortgage, the borrower doesn't make monthly payments to the lender and you are qualified based on your home equity not on your annual income.

With a reverse mortgage seniors have access to tax-free cash that they can use in a number of ways, including:

• Supplement retirement income. (Finally take that dream vacation. Avoid withdrawing from RRSP’s when the market is down.)
• Make home improvements.
• Give a gift to children/grandchildren to use towards a down payment in purchasing a home.
• Pay off other high-interest debts.

The borrower is not required to pay back the loan as long as they live in the home, as the loan is typically paid off when the borrower sells the home or passes away.

You can choose to get the funds all at once, in regular installments, or a combination of the two. The initial maximum limit can be put in place and the funds withdrawn as required.

Overall, a reverse mortgage can be a useful tool for seniors looking to access cash from their home equity. It’s important to speak to a licensed Mortgage Professional to find out how much you qualify for and see if this product is right for you.