SIMPLY MONEY
Reverse Mortgage Loans
If you are a retiree, a Reverse Mortgage Loan allows you to borrow money against the equity in your home.
What is a Reverse Mortgage Loan?
Designed for Retirees, a reverse mortgage loan gives you the option of accessing the 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 the borrower/s passes away, the property is sold, or you no longer live in the property. You can make payments along the way to reduce the final balance if you wish.
What to look out for
There can be restrictions on a Reverse Mortgage, such as:
It cannot be used for business purposes.
It cannot be used to refinance an existing loan where the original funds were acquired for business, bridging or investment purposes.
Personal investments, e.g. purchase of an investment property or shares.
Building/construction purposes.
An excellent option for those in retirement, Simply Money can help you decide on the right choices.
Still have questions? Ready to apply?
Understanding what you need in a loan and helping you navigate the many options is what we do best. Get in touch with us on 0418 340 485, or, if you prefer, you can email us using the form below. We are here to help!