A reverse mortgage is a two-edged sword: Be wary.

A reverse mortgage is a two-edged sword that requires handling with care, if at all. It provides money to you during retirement by taking that money out of the equity you have in your home. You don’t pay interest on the money until you sell your home. The catch: The interest rate (roughly 5.5 per cent) means you’ll pay over $200,000 in interest on a $250,000 “loan” if you don’t sell for 10 years. It’s a predatory scheme, say some. Full story

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