Frequently Asked Questions
How much can I borrow?
The amount you can borrow is determined by the age of the youngest borrower and calculated as a percentage of the house value. The older a Senior becomes, the more they can borrow.
What purpose can I borrow?
The loan proceeds can be used for any worthwhile purpose
Do I have to make repayments?
No. There is no need to make repayments, but you can if you wish.
Will my loan ever exceed the value of my house?
No. There is a “No Negative Equity Guarantee” whereby the loan will never exceed the value of your house.
You can also seek to maintain a minimum amount of equity.
Do I lose Ownership of my House?
No. The Reverse Mortgage is a loan secured on your property and is not a sale of your property. You retain full ownership.
Will I need legal advice?
Yes. You will be required to seek independent legal advice from a solicitor of your choice
Will a Reverse Mortgage affect my pension?
A Reverse Mortgage may affect your pension and you should discuss your situation with a Centrelink Financial Information Officer. An appointment can be arranged by ringing Centrelink on 13 23 00
Can I have a lump sum now and some more later?
Yes,you can access up to your maximum, either as a lump sum now, a flexible drawdown which is kept for when you may need it, or a regular periodical payment to boost your your income.
You may also have a combination of the above.
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