By David Hodges on September 15, 2014 Estimated reading time: 1 minute
Why there’s a sudden surge in reverse mortgages
By David Hodges on September 15, 2014 Estimated reading time: 1 minute
Soaring home prices likely to blame
Advertisement
The number of reverse mortgages in Canada increased 29% year-over-year in June—a significant jump. Fee-only planner Jason Heath says the rise is due to soaring home prices in Canada, allowing seniors with limited income to use reverse mortgages to tap into their growing home equity. But Heath warns that using reverse mortgages is risky, because they permanently eat through your home equity, and they do so quickly. A more prudent option is a home-equity line of credit. If you’re really short on cash, it’s often better to sell your house, spend some of the proceeds, and rent.
Source: HomEquityBank