If you are a retiree, a Reverse Mortgage Loan allows you to borrow money against the equity in your home.
Designed for Retirees, a reverse mortgage loan gives you the option of accessing equity in your home to use now in your retirement. Funds are either paid in a lump sum or in instalments – the options vary with different lenders.
Each month the loan balance will incorporate all fees and charges – however unlike a ‘normal’ loan, the lender recoups payment when borrower/s pass away, the property is sold or you no longer live in the property. You can, however, make payments along the way to reduce the final balance if you wish.
There can be restrictions on a Reverse Mortgage, such as:
A great option for those in retirement, Simply Money can help you decide on the right options.