Reverse Mortgages

Reverse mortgages are loans which allow people aged over 60 to access the equity in their homes to help supplement their income in retirement, or borrow a lump sum for renovations, a holiday, motor vehicle purchase or any other personal purpose.

There are no repayments with the loan and the capitalised interest being repaid upon sale of the home or within 10 months of the borrowers passing to their estate. Borrowing amounts are aligned to age of borrower with between 10-45 percent of the home value able to be accessed, either as a lump sum or in regular installments.

It is recommended that the borrower speaks to their financial adviser before proceeding with this type of loan.

The borrower should consider how they feel about using some of the equity in their home that would otherwise be left to their beneficiaries.

If a borrower believes this type of loan is suitable and they are over 60 years of age, they should speak to their financial adviser, to assess the suitability and situation and recommend an appropriate strategy to help to achieve their retirement goals.

Contact us for further information.