If you have been thinking about getting a reverse mortgage, but have been deterred by potential costs, think again! It is a common misconception that reverse mortgages have high upfront costs, but in reality a reverse mortgage can be as affordable as a regular mortgage in Canada. Read on to find out what the costs are as explained by mortgage broker in Brampton, Rakhi Madan.

One of the first costs that may come to your mind is the interest rate. Reverse mortgage interest rates are comparable to other home equity loans, but are usually around 2% higher than the interest rates of a regular mortgage or line of credit. In exchange for a higher interest rate, the homeowner gets tax-free upfront cash and no need for monthly payments until the homeowner moves or sells the home. This is an amazing deal for many homeowners, and is unique to a …