Reverse Mortgages
As an accredited member of SEQUAL (Senior Australians Equity Release Association of Lenders), Australia's peak body for the Equity Release market, we are able to assist Australians over 60 to give you the financial flexibility to make more possible in your life.
A Reverse Mortgage is a loan secured by your property, but you do not need to make any repayments (capital or interest) until you leave the property.
A Reverse Mortgage provides you with the opportunity to use the equity you have built in your home over the years to do a whole range of things you might still want to do - help the grandkids with their uni fees, renovate the house, buy a better car, take a holiday, or ease a bit of the worry of your present day-to-day living.
A Reverse Mortgage allows you maximum freedom with the money you borrow - you can receive your loan as a lump sum, a monthly income, a flexible drawdown or a combination of all three. You also have the choice between fixed and variable rates, depending on the structure of your loan.
This product also has the protection of a No Negative Equity Guarantee, meaning that neither the borrower nor their estate will owe more than the value of the property unless the borrower breaches the loan terms.
Reverse Mortgages have some key criteria that you need to fulfill.
- You must be aged 60 or over. There is no maximum age limit. It does not matter if you are a pensioner, self funded retiree or if you continue to work.
- You must own the property. You may be the sole owner or share ownership with your spouse (there are some exceptions for trusts or companies).
- You must still reside in the property. In certain circumstances, however, you may be allowed to use your investment property as security.
What You Need To Consider
Before you make any decision about applying for a Reverse Mortgage, you should talk things through thoroughly with your partner or relatives. It is equally important to discuss how you believe a Reverse Mortgage will assist your life with your family members and any other beneficiaries. If you apply for a Reverse Mortgage product and are accepted, their inheritance may be affected and they may wish to assist you in your application process.
You will also need to seek the independent, professional advice of a financial adviser. Your financial adviser will be able to weigh up the pros and cons of whether a Reverse Mortgage plan is the right move for you and which of the options available is most suitable.
You will also need to consult with your own solicitor or legal adviser.
If you are on a pension or receiving any government payments you should check with Centrelink to determine how taking out a reverse mortgage could affect your benefits.
How much can You Borrow?
As with all Reverse Mortgages, the amount you can borrow is based on two key factors:
- The agreed value of the property, based on an independent valuation
- The age of the youngest borrower.
The age of the youngest borrower is important as it forms the basis for the amount of cash you can borrow against the value of your home - this is called the Loan to Value Ratio (LVR).
How do I get a Reverse Mortgage?
Any decision involving finances is usually a major one and involves much discussion. Once you have read all the available information and are comfortable that a Reverse Mortgage is right for you, we suggest you cross check the following list.
- You (and your partner) are aged 60 years or over.
- You have talked about your decision to take out a Reverse Mortgage with your family members and any other beneficiaries.
- You have arranged an appointment with your financial and legal advisers for their views and expert advice on this opportunity.
Choosing a Reverse Mortgage is an important decision. We want to help you be certain that it's one of the best. So when it's time to choose your finance, call us on 1300 788 371.