The writer is a reverse mortgage broker with numerous reverse mortgage clients.
A reverse mortgage is sometimes called a deferred payment loan, and for a very good reason. Instead of paying off the home loan as you borrow money, the payments are put off (deferred). This is why reverse mortgages can be such a good choice for seniors; when you’re on a fixed income or living off of your savings, it can help to have some extra cash in hand to supplement.
Because payment is deferred, you are spending the equity in your home, rather than earning it (as you would with a traditional forward mortgage).
Since equity is an intangible value, you never feel the effects of the equity going down, but you sure feel the money flowing steadily into your checking account!
Vancouver real estate is the topic of most conversations in BC. Duncan’s Vancouver mortgage business gives him the insight to provide topical articles on the state of Vancouver real estate.