As a parent or grandparent, you may want to ensure that you leave an inheritance to your children and their children, or perhaps you want to help them out financially now – education expenses, a deposit for a home loan, any number of possibilities!

You can use some of the reverse mortgage to pay off your existing mortgage, and you can spend the remaining money as you wish. That puts more money in your pocket and helps to ensure that you don’t have to rely on your children financially during your retirement.

If you die, your heirs have several options, depending on the circumstances. If you have used up only some of your reverse mortgage, your heirs can repay it and continue to own the house.  Alternatively, they could also opt to sell the home.

Legislation ensures a “no negative equity” guarantee is mandatory for all reverse mortgages.  This means that the loan, when repaid, can be no greater than the sale value of the property.  (Property must be sold at arm’s length.)

If you want to ensure that you aren’t a financial burden on your children during your lifetime, a reverse mortgage may be ideal for you.