Assured Home Loans can give you access to a Reverse Mortgage Home Loan. Reverse mortgages are relatively new in the home loan market and were brought about to assist elderly borrowers in a number of ways.
A reverse mortgage works in the following manner: The lender calculates the equity in a family home and will lend up to 30% of the property value. For example, of a property is worth $300,000.00, up to $90,000.00 of the equity may be used, less any amounts currently owing.
The lender will lend funds with no set minimum monthly repayments required. Interest is simply capitalised to a set limit and the lender will recoup the outstanding funds on either the death of the borrower/s or if the security property is sold.
The benefits are many. The equity in the property can be released to give to siblings, take an overseas holiday, increase the quality of lifestyle or any other reason. Many elderly couples are utilising the reverse mortgage product so that they do not have to sell their home and downsize in order to subsidise retirement. Instead, the elderly borrowers can remain in their family home and borrow funds against the value of the house. Also, the older the borrower, the greater the loan amount that is made available.
As a lot of pensioners can not apply for a traditional mortgage, a reverse mortgage opens up the lending market further to elderly people.
If you’d like to talk to one of our experienced home loan consultants to assess what your finance options are.