Reverse Mortgage
Reverse Concept
A Reverse Mortgage allows asset rich but income poor homeowners to borrow against the equity they have built up in their home without having to make payments on the principal or interest.
Property prices all over Australia have surged by more than 50% in recent years giving existing home owners substantial equity to use for securing a loan - Equity is the difference between what you owe on your mortgage and what the property is actually worth (according to the bank!). Sometimes this type of loan is referred to as a Home Equity Conversion Loan.
The size of the mortgage that is available to you depends on the amount of equity you have in your home and you may be required to take it as a lump sum. Get a free quote on a Reverse Mortgage
Reverse Mortgages are commonly used to repair or upgrade the home, take a holiday, or to purchase expensive items like a car.
Home Reverse Mortgages
As the Australian government puts more responsibility on individuals to fund their own retirement, many people find their super and other income sources, such as the pension, don't provide enough money to support their lifestyle. Sometimes it`s not just a case of the little extras but also the critical necessities such as medical expenses or a new car. An obvious option for many is then to sell their biggest asset - their home, but that could just be compounding the problem. This is where reverse mortgages may provide the answer if you`re a full or partial pensioner or a fully funded retiree in need of extra cash.
Reverse mortgages are available to residential property owners over 60 and are viable finance options for pensioners. It allows you to release funds using the equity in your house. You can use these funds as an income stream, or to borrow against, for personal lifestyle needs such as travel, home improvements etcetera.
