What Is A Reverse Mortgage?
A Reverse Mortgage is a lending product for seniors aged 65 or older. It is a specialised type of loan offered by some but not all banks. It enables you to access the equity you have in your home. The funds can be provided to you in two ways, either as a lump sum payment or as a regular income stream.
The interest payable on a reverse mortgage is added to the loan balance so you do not need to make repayments. These types of loans must be paid off if the property is sold, if the borrower leaves the home permanently or if they pass away.
Most Lenders will lend no more than 40% of your property value for a Reverse Mortgage. So your protected equity must be at least 60%.
Loans are not always easy to understand, especially reverse mortgages so don't feel bad if you are having trouble understanding the concept. We are happy to speak to you discuss your needs and what your options are, simply phone us or use the contact us page.