A major benefit of a reverse mortgage is you have access to ready cash by tapping into the equity in your home. The payments can cover daily expenses, be used for improvements or even pay off debt. How does a reverse mortgage work? Approach us for the best advice and options for your specific requirements.
A major benefit is that you do not have monthly mortgage payments to worry about. Payments can be as a lump sum or regular schedule instalments. The payments are guaranteed if you continue to meet the requirements. Moreover, the money you receive goes even further as it is tax-free.
Access Your Equity
Consider a reverse mortgage if you are 60 years or older and own your own home. We effectively pay you based on your house’s equity. A rule of thumb is that the older the borrower and the greater the equity built up, the more you can borrow.
Interest accrues on the loan balance, while the borrower pays any associated fees such as appraisal and closing costs. The loan is repaid when the last remaining borrower leaves the property permanently this can be done selling the home, refinancing, or using other assets. If the home is sold for more than the loan balance, the remaining equity accrues to the borrower or heirs. If the loan balance accrues to more than the value of the security property the borrowers are protected by a Non Negative Equity Guarantee, and the lenders can only ever ask to be repaid the amount of the security.
Looking After Your Financial Health
It is important to understand the full financial implications of a reverse mortgage. Discuss your options with a qualified advisor such as ourselves so you can make an informed decision about your future financial health.
More than a decade’s experience consulting with senior Australians and Self-Funded Retirees regarding specialist credit products designed to support retirees.
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