Reverse Mortgage - Equity Tap

For many seniors there is great pride in owning and living in a home that over the years you have worked for. Australia’s property growth has a history of dependable growth, and it is likely that for many seniors YOUR home has grown significantly in value to become what is quite likely your greatest asset.

You may find the investments you relied on to support your retirement are not covering the ever-increasing cost of living, let alone life’s luxuries.  Reverse Mortgages are a concept that have been in existence in the UK and US for over 40 years and can be a convenient way for seniors to utilise the equity in your home to help provide capital for much needed items or life style luxuries.

Consider the equity in your home which could help provide for your future finances without having to move.

A number of Options

Reverse Mortgages are now available through a number of lenders and this is quite likely to be broadened even further as these types of loans grow in popularity in Australia.

Most Reverse Mortgages do not have a repayment programme – ie there is NO requirement to make regular repayments. The interest capitalises and is repaid either when the home is sold or the borrower deceases and the loan is cleared from sale of the home. Most lenders put in place limits on the amount that can be borrowed in relation to the value of the home so that with expected housing price growth some equity will remain in the home when the loan is eventually repaid.

Fixed rate options or variable rate loans are available. Progressive drawdown or regular cyclical drawdown options also are available through some lenders.