THE SANDWICH GENERATION
In the new federal budget, $9 million was cut for reverse mortgage counseling, leaving senior borrowers at risk of being needlessly pressured by mortgage brokers to take out a mortgage that is inappropriate.
These funds from the federal government will be cut off October 1, 2011.
A reverse mortgage (RM) allows homeowners 62+ to convert equity in their home to a cash advance in a lump sum or to receive monthly payments. The loan does not have to be repaid until the borrower or borrowers, including a husband and wife, move out or die.