A reverse mortgage is a loan against the agreed value of your house. It is available to homeowners over 60 years of age. There is no need to make any repayments during the life of the loan. Instead, the interests charged are accrued throughout the term of the loan and the loan and compounded interest are repaid when the borrower permanently move out of the home, enter into an aged care facility, or upon death. The proceeds of this type of loan can be drawn an income stream or as a lump sum or a combination of these to provide for lifestyle needs, such as home improvements, travel, buying a new car etc. There is a range of reverse mortgage options available. Which one is the most appropriate will depend on the borrowers’ individual circumstances and a host of other factors.
When you are considering a reverse mortgage option, make sure that you are appropriately informed and advised before proceeding. Mortgage Zone's consultant is accredited with SEQUAL and professionally trained to assist you.