thanks!

They get paid when you die or sell the home.

These are horrible products. You are basically borrowing money against the equity on you home every month and they are charging you interest on the debt. When you die or sell the house they collect all the money they lent you plus all the interest from your estate / proceeds of sale.

Someone is much better off selling the home and renting if they need the money. The only time this is something worth doing is if you need the money, children can't help you by purchasing the home, and you really want to stay in the same house till the end.

There's a good faq section on this site about reverse mortgages, as brought to my attention by average_joe

http://canadareversemortgage.com/faqs-reverse-mortgage-canada.htm

Pardon my next question:

So... how does the mortgage company make its money?

I've never really delved into this topic very much

The interest rate can be higher with reverse mortgages compared to a typical refinancing which is currently around 1.95% on a variable rate.

Reverse mortgages are usually a horrible idea except for a tiny tiny fraction of people who

1) Want to remain living at the current home until they die.
2) Have no children or anyone who they care to leave an inheritance to.
3) Have a lot of equity in their home but no other liquid resources.

If someone answers yes to all three then a reverse mortgage is the best option for them. If they answer no to even one then it is a bad decision.

So... does this mean that they're good or bad...
I want to hear some examples from people.

It's like bankruptcy.. people are "excited" about bankruptcy at first because they think it will solve their problems. Once they're in bankruptcy, they always say that they wished they never did it.
I've never really heard comments from anybody on whether they like reverse mortgages or not.

According to the banknerd site:
A reverse mortgage is also known as a lifetime mortgage and is available to those individuals that are 60 years or older. One of the most intriguing aspects of a reverse mortgage is the fact that there are no payments to be made while the property is still occupied by the homeowner(s).

At first glance this seems almost too good to be true – obtaining a large sum of tax-free money without having to pay it off!?! Sign me up!

Of course, when something seems too good to be true – it typically is. The debt accrued on your property after signing a reverse mortgage is typically due once the homeowner moves (either to a new property or retirement home) or passes away. As well, a reverse mortgage has the possibility of back-firing and working against you.

Read more: http://banknerd.ca/2009/05/21/reverse-mortgages-%E2%80%93-pros-and-cons/#ixzz0d9dSKYj9

http://banknerd.ca/2009/05/21/reverse-mortgages-%E2%80%93-pros-and-cons/

I'm curious to know about anybody who's gotten a reverse mortgage , if they're happy or not with the situation?

What are the pros and cons of the reverse mortgage?

Financial Post
This is a story of a lady who inherited a house from her father, and didn't have the funds to do the needed immediate repairs..
She got a reverse mortgage for $185,000, for which she invested $150,000 and used the rest for renovations

When Anne Lynch, 62, inherited the rustic family home three years ago it seemed like a good fit. Her father, who passed away at the age of 91, wanted it kept in the family and all Ms. Lynch's friends lived near by. Moreover, the house was mortgage-free, is about a kilometre from the ocean in Sidney, BC, 20 kilometers north of Victoria, and was worth just under $400,000.

http://www.financialpost.com/personal-finance/mortgage-centre/story.html?id=2420555