Reverse Mortgages are a special type of loan that allows you to access the equity you’ve built up in your home.
These loans are also referred to as Equity Release or Equity Tap.
In their simplest form, a reverse mortgage provides a lump sum or a regular payment of money to a homeowner with the lender registering a mortgage against the home
How much can I Borrow?
Maximum percentage of home's value that can be borrowed |
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Age 55 |
10% |
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Age 66 |
21% |
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Age 77 |
32% |
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Age 88 |
43% |
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Age 56 |
11% |
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Age 67 |
22% |
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Age 78 |
33% |
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Age 89 |
44% |
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Age 57 |
12% |
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Age 68 |
23% |
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Age 79 |
34% |
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Age 90 |
45% |
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Age 58 |
13% |
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Age 69 |
24% |
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Age 80 |
35% |
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Age 91 |
46% |
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Age 59 |
14% |
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Age 70 |
25% |
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Age 81 |
36% |
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Age 92 |
47% |
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Age 60 |
15% |
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Age 71 |
26% |
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Age 82 |
37% |
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Age 93 |
48% |
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Age 61 |
16% |
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Age 72 |
27% |
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Age 83 |
38% |
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Age 94 |
49% |
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Age 62 |
17% |
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Age 73 |
28% |
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Age 84 |
39% |
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Age 95 |
50% |
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Age 63 |
18% |
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Age 74 |
29% |
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Age 85 |
40% |
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Age 64 |
19% |
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Age 75 |
30% |
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Age 86 |
41% |
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Age 65 |
20% |
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Age 76 |
31% |
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Age 87 |
42% |
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What are the other requirements?
The minimum age of youngest Borrower is 60 and the maximum age of youngest Borrower is 90.There is no restriction in regard to marital status but the Maximum number of Borrowers is 2.
Reverse mortgages are available to Individuals Only, they cannot be used by Companies, Trusts or Guarantors.
The Security Property must be the Borrowers’ principal place of residence or a residential investment property and if located within 5 km of coast must have a population minimum of 2,500.
Elsewhere the population requirement is 5000 within 10 kilometres
A Revaluation will normally be done every three years. The cost of this revaluation will be added to the loan balance.
Ease the burden on your parent moving into residential aged-care
One of the hardest decisions about moving to residential aged-care is selling the family home. We’ve all experienced the memories and emotions that are part of your own home and having to sell it to fund an Accommodation Bond makes it feel so final.
If you know someone who is considering moving, you will understand the implications. However, it is not necessary to sell your house anymore -- a reverse mortgage can make things easier.
A reverse mortgage lets people over 60 use the money trapped in their home to fund their lifestyle. With a reverse mortgage, you don’t repay the loan until you decide to sell it, or pass on the home. The major difference of a reverse mortgage is that you remain the owner of your home.
Most importantly, you can access the money tied to the value of the home to pay an Accommodation Bond.
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