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Reverse Mortgages

What is a Reverse Mortgage ?

Reverse mortgages release equity tied up in your house. They work in the opposite way to a home loan. Instead of the loan sum diminishing because of your repayments, interest is applied to your loan amount but no repayments are required so the loan sum increases.

You can use the money, for example, to buy a new car, go on a holiday or make urgent repairs to your house. Reverse mortgages allow you to keep your financial independence without the need to sell your house and relocate to a smaller residence.

The older your are, the more you are generally able to borrow. Most reverse mortgages have a variable interest rate, usually about 0.5% to 1% higher than the rate for standard home loans. All lenders allow you to make voluntary repayments, some let you redraw repaid amounts if you need them at a later time.

If you would like to find more general information on reverse mortgages, you should visit the Australian Consumers Association website - www.choice.com.au

Try the reverse mortgage calculator from ASIC - click here

Source: www.choice.com.au

Reverse Mortgage Lenders