Financial solutions for seniors

What is Reverse Mortgage?

Reverse mortgages are financial products that release available equity in your home. Put simply, you can borrow cash against the value of your home. You don’t have to make regular repayments until you leave and move into a health care facility, sell your home or die. When the loan ends you, or your estate, repay the outstanding amount, usually out of the proceeds of the sale of your home. Should the proceeds of the sale be less then the amount of your loan you are not required to pay the difference (guarantee of no negative equity).

How does the Reverse Mortgage work?

You are normally eligible for a reverse mortgage if you are at least 55 years or older and own your own house or unit. You will usually be able to borrow between 15% and 50% of the value of your home, depending on how old you are - the older you are the more you can borrow. In the case of couples who are both owners of the property, the amount you can borrow is based on the age of the youngest borrower.

You can structure the loan the way you want to according to your needs. You can take a lump sum to pay for your immediate expenses. Alternatively, you can take a regular stream of income or combination of both, the income stream and the lump sum.

Each year the fees and interest you would otherwise pay with a normal loan are added to the mortgage balance. Over time, you're charged interest on the interest (i.e. compound interest) and that builds up the total amount you owe.

Why would you want to use the Reverse Mortgage?

·         You may want to take financial pressures from your life and enjoy retirement (i.e. travel around the world, buy a new car)

·         You find it hard to meet your daily expenses and do not have regular income and your only asset is your home (i.e. reverse mortgages can provide the funds needed)

·         You do not want to sell or move out of your house to fund your retirement (i.e. with reverse mortgages you can stay living in and keep the ownership of your home!)

·         You may want to fund an accommodation bond to access a health care facility

Why you should consider us to help you to find the reverse mortgage you need?

·         We are a responsible mortgage broker that will find the best reverse mortgage product to fit your needs

·         We will guide you through the application process

·         We will provide access to other information you might need (i.e. referrals to financial planners, solicitors, valuers)

·         Access to more then 60 lenders on the market

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