The Saskatchewan government is being urged to put new regulations in place for seniors considering a "reverse mortgage".

The Saskatchewan Law Reform Commission says older people need to know exactly how those loans work, before they get one.

A "reverse mortgage" can be a financial solution for seniors who find themselves house rich, with a paid-off property, but income poor. Homeowners get cash in exchange for a mortgage and don't have to pay the money back until they move.

However, a reverse mortgage can also be relatively expensive, because there is a premium interest rate charged.

The Law Reform Commission had a look at them and decided that considering that the loans are targeted at older people, and the unique nature of the mortgage, more protections are needed.

"Older persons who are looking at that as an option in their financial planning should be aware of what the costs are, because they're so different," commission chair Merrillee Rasmussen said.

There should be clear disclosure rules and a seven-day cooling-off period to allow consumers to back out of the deal, she said.

People in the reverse mortgage business say they don't want a special category of regulation, saying existing rules can be adjusted to meet particular concerns.

"I don't have any problem, really, with regulation, disclosure, cooling-off periods, if they apply equally to all products," said Steve Ranson, the president of Canadian Home Income Plan.

"I just can't support the view that our product is that much more complicated or that much more difficult to understand."

Ranson says it would be easier on consumers if they knew that one set of rules applied to all loans.