Live a more comfortable retirement with a Reverse Mortgage
A reverse mortgage allows individuals over 60 to access the equity in their home, helping them fund a more comfortable retirement, and importantly with a reverse mortgage, you can continue to own and live in your home.
What is a Reverse Mortgage?
Unlike a standard mortgage, you are not required to make regular repayments — although you are able to do so at any time. It’s important to note that the loan balance will grow over time due to the interest compounding. The loan is repaid when you sell the property, move out or pass away.
To be eligible for a reverse mortgage, you need to own your home outright or have a standard mortgage that can be paid off by the proceeds of the reverse mortgage. The amount of money you can access with a reverse mortgage is usually determined by two factors — your age and the value of your home.
What are the benefits of a reverse mortgage?
No repayments are required! With this, you are not required to make any loan repayments during the loan term and the loan is repaid from the sale or refinance of your property.
The loans are on a variable interest rate so you can make voluntary repayment if you choose to but please note this is not required.
No negative equity guarantee, so you are your estate is protected!
Flexible draw-down options. You have the choice to take a lump sum, regular advances, and a cash reserve facility for you to access in the future when you need the loan.
Here at Select, we understand the disadvantages of living on a pension and understand that many Australians over 60 are asset rich, despite not having a high level of cash savings. This is due to you working hard all your life to pay off your home and support your family and the bulk of your savings is tied up in property as equity.
Where many believe the only solution to access their lifelong savings is downsizing, fortunately, a Reverse Mortgage may be the solution for you or a loved one.