REVERSE MORTGAGE

Australian retired homeowners have the opportunity to use the savings they have accumulated in their home using this facility of Reverse Mortgage. The primary purpose of this mortgage is to allow retired homeowners access their equity in the home without needing to sell it. This way they cannot be forced to sell their home.

At MORTGAGE NEXT, we can help you seek credit under this facility. Please contact our advisory team to assist you further.

Under this credit facility, you are allowed to access the equity in your home without having to make any repayments until you vacate the property.

LVR increases by 1% for each year older than 60.

As a guide, if your age is 60, you can borrow up to 15% of the value of your home, and if your age is 75, then maximum borrowing can be 30%.

The need to access equity from your home arises when you plan to improve your long term retirement funding. You don't have to sell your home in order to access funds. This eases finances post retirement. 

There are diverse range of needs which includes but not limited to:

• Setup regular income facility
• Refinancing an existing mortgage
• Renovating/modifying own home
• Buying a new car
• Arranging funds for children/grandchildren
• Unexpected contingencies

There are various lender that provide lines of credit or home equity loans. However, for retirees who may not have the income to demonstrate, any form of credit has become tougher to seek. In the above two type of credit facilities, the borrowers needs to make regular repayments to service the loan. This leads to reduction in cashflow and thus, affect retirement income.

There are many retired Aussies that tell us that they feel insecure knowing their home is subject to repossession if they fail on any repayment.

With Reverse Mortgage, you don't need to make any repayment of whatsoever. You can choose to, but not mandatory. This gives a guarantee that no one can take away your home - lifetime occupancy.