ABOUT MELBOURNE MORTGAGE FINANCE

A reverse mortgage allows homeowners aged 60 or older to convert part of their home equity into cash without having to sell their home. Here’s how it works: the title to the home remains in the customer’s name the customer continues living in the home. Normal responsibilities continue, including maintaining the property, paying council rates and building insurance premiums. the loan can be structured as follows: immediate cash out, monthly income or setting up a Cash Reserve fund for future use (or any combination of these options) monthly interest repayments are not required, but can be made voluntarily. If customers agree to make regular interest payments, a lower interest rate is available the lender takes normal 1st mortgage security over the property title At Melbourne Mortgage Finance, we ensure our clients are fully educated on reverse mortgages, offering comprehensive advice and tailored solutions to fit individual financial situations

the amount you can borrow depends on your age and the property value. at age 60, customers can borrow up to 20% of the property value for each year over the age of 60, the maximum loan increases by 1%. For example, at age 70, the maximum loan increases to 30% the older you are, the more you can borrow. The maximum loan is 50% of property value for customers aged 90 or more. calculations are based on the age of the younger applicant

Your reverse mortgage loan is repaid when: the property is sold both borrowers move into residential aged care both borrowers have passed away In the event that borrowers move into aged care or pass away, a period of 12 months is allowed for the loan to be repaid. The loan can be repaid at any time without penalty.

The main benefit of a reverse mortgage is improving your long-term retirement funding: access to cash or monthly income, or both set up a Cash Reserve contingency fund for future needs improve your retirement lifestyle continue living in your own home enjoy the retirement you’ve worked hard for

Reverse mortgage eligibility is generally as follows: the younger borrower must be age 60+ minimum property value of $600,000 the property must be in an eligible postcode primary residences, holiday homes and investment properties are all acceptable securities applications must be in personal names, not in the names of companies or family trusts

setting up a regular income facility topping up your super setting up a Cash Reserve fund for unexpected future expenses travel refinancing of existing mortgage debt, credit card debt or personal loans renovating or modifying your home funding an unexpected medical expense buying a new car helping children or grandchildren buy their first home funding in-home care expenses funding the transition to residential aged care.

The youngest borrower has to be aged 60+

You do not have to repay your reverse mortgage until the property is sold or both borrowers move into residential aged care or both borrowers have passed away In the event that borrowers move into aged care or pass away, a period of 12 months is allowed for the loan to be repaid. The loan can be repaid at any time without penalty.

The short answer is no. Reverse mortgages in Australia are governed by the National Consumer Protection Act 2009. You cannot end up owing us more than the house is worth. The “no negative equity guarantee” (NNEG) clause, introduced in 2012, means you are protected by law and cannot owe more than your home is worth, irrespective of the value of the property.