Loan Scenario of the Week (21/07/2023)

ongoing expenses

Amelia (Aged 75) lives alone in her home in Coffs Harbor. She relies on the Centrelink Aged Pension and a UK Pension for her income.

She originally got her Reverse Mortgage to repay a mortgage and credit cards that had built up over time, allowing her to free up her cash flow and enjoy a better lifestyle. She also redid her bathrooms and had her house repainted with the initial Reverse Mortgage.

She would now like to get an increase on her Reverse Mortgage to replace her aging kitchen and have funds for future expenses. This loan has allowed Amelia to continue her lifestyle in a manner that she is comfortable, rather than just enduring it.

(Names, locations, amounts, & other personal details have been changed to protect the client’s identity.)

Some of our FAQs

Do I still retain the ownership of my home?

Yes, your name remains on title, like any other traditional mortgage. The lender is simply registered as having an interest like your conventional mortgage loan.

What is the acceptable age of the youngest borrower?

60 years, however, some lenders require the youngest borrower to be 70 years of age.

Are the borrowers protected under the National Consumer Credit Protection Act?

Yes, the law has been amended to include senior’s equity release loans under the National Consumer Credit Protection Act.

Read more at our main FAQs page

Loan Scenario of the Week (21/07/2023)

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