Why have a reverse mortgage?

Reverse mortgages (also sometimes known as equity release plans), are becoming an increasingly popular and practical way for people over 60 all over the world to finance their day-to-day living needs and desires in their senior years.

A reverse mortgage is a loan. It allows you to borrow an amount of cash against the agreed value of your home.

Unlike other loans, you do not need to make any repayments during the life of the loan.

A normal bank loan is based on your income and your ability to make repayments.

In the case of a reverse mortgage, it is the agreed value of your home that acts as the security for the amount you borrow.

Interest on this loan is accrued monthly throughout the length of your loan. It is repaid when you either permanently move out of the home, move into ongoing aged care, or upon death.