Reverse Mortgage

January 31, 2016

Reverse Mortgages are best suited to borrowers who seek to convert the equity in their homes into cash.  This style of loan allows the cash-poor, asset-rich to tap into the value of their property without having to sell it. 

Reverse Mortgages are available to Borrowers of 65 years of age and above.  As a rule of thumb, these Borrowers can borrow up to approx. 25% of the value of their principal place of residence.  The reverse mortgage is payable when the house is sold or the last borrower moves into aged care.

It is a given that clients seek independent legal and financial advice prior to applying for a reverse mortgage.  Better choice also recommends that clients discuss a reverse mortgage with all family members prior to applying for a reverse mortgage.  Please avail yourself of the ASIC calculators here

With any loan there is of course interest to pay, however a reverse mortgage requires no monthly payments. Instead, the loan is paid back with the interest accumulated when the house is sold. In other words, the interest is capitalised which means it’s added to the amount of the loan.

There are a variety of reverse mortgage options and a knowledgeable Better Choice Finance Broker can help ensure that you are maximising the full benefits.

Better Choice Mortgage Services is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this website. While the information contained within this website is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. Although the Better Choice Mortgage Services website may include links providing direct access to other internet resources, including websites, Better Choice Mortgage Services is not responsible for the accuracy or content of information contained in these websites. Links from Better Choice Mortgage Services to third-party sites do not constitute an endorsement by Better Choice Mortgage Services of the parties or their products and services. The appearance on the website of advertisements and product or service information does not constitute an endorsement by Better Choice Mortgage Services, and Better Choice Mortgage Services has not investigated the claims made by any advertiser. Product information is based solely on material received from suppliers. Advanced Finance (Pty) Ltd t/a Better Choice Mortgage Services are not financial planners or accountants and we would encourage our clients to seek professional advice before acting on any a financial or taxation information in this news post.

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