A Reverse Mortgage is a loan secured by the property, but you do not need to make any repayments (principal or interest) until you leave the property. You then have a further 12 months to pay back the loan.
A Reverse Mortgage provides you with the opportunity to use the equity you have built up 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.
Reverse mortgages (also sometimes known as equity release plans), are becoming an increasingly popular and practical way for people over 60 all over the world to finance their day-to-day living needs and desires in their senior years.
A normal bank loan is based on your income and your ability to make repayments. In the case of a Reverse Mortgage, it is the agreed value of your home that acts as the security for the amount you borrow.
Interest on this loan is accrued monthly throughout the length of your loan. It is repaid when you either permanently move out of the home, move into ongoing aged care, or upon death.
- You can access cash as a lump sum, a regular stream of income or a combination of both - to suit your needs
- You don't need a current income to qualify
- You get to stay in your home and keep ownership
- You usually don't have to make any regular repayments while you live in your home