novel coronavirus pandemic is driving renewed interest in reverse mortgages, as cash-strapped seniors look for financing options and rethink their plans to spend their last years in long-term care homes.A reverse mortgage allows Canadians aged 55 and over to borrow against their home equity.
The loan, which can be taken as a lump sum or monthly income, requires no payments. Instead, principal and interest are paid when the homeowner sells or dies.In a country where around a third of Canadians approaching retirement say they have no savings, reverse mortgages were already popular.
But the health emergency is giving Canadians new reasons to consider tapping their home equity for a no-payments loan, according to the country’s two.