Problems with interest rates and repayments? Ask for home loan help.
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A Reverse Mortgage (also known as equity release) is a loan product where borrowers can access the equity in their home without having to repay the debt until the property is sold.
This loan product is generally reserved for older people, perhaps pensioners who wish to have access to locked up equity to enable them to meet expenses or receive a top up to their income. It is generally restricted to less than 30% of the value of the home dependant upon age of the owners. As interest compounds during the life of the loan equity can be quickly eroded especially in times of slow or negative property value growth.
Lenders who operate in this field are required to give guarantees that they will not ask for repayment of any losses as a result of the loan balance exceeding the property value.
Generally Brokers who deal in this product are required to be trained and accredited by the industry body known as SEQUAL (Senior Australians Equity Release Association of Lenders).
Call Your Local Finance mortgage broker on 1300 787 665 to discuss this product.
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