Reverse mortgage broker - brisbane
What is a reverse mortgage?
A reverse mortgage is a special type of loan that allows borrowers aged 60 years or older to draw out equity from their home for a wide range of purposes.
The money can be used for:
* Day to day expenses
* Debt consolidation - pay off home, personal., car or credit card loans
* Home repairs and renovations
* Holidays
* Medical bills
* Car or boat purchases
* Aged care
* Regular income stream for improved lifestyle
The money can be paid as a lump sum or as regular payments. The choice is yours.
You do not need to sell your house or downsize to live the lifestyle you want.
What repayments do I need to make for a reverse mortgage?
Unlike a regular mortgage, no regular repayments are required for a reverse mortgage.
Instead, the interest is added to the loan each month and the loan is paid off through the sale of the property when the last borrower ceases to reside in the property.
How old do I need to be to apply for a reverse mortgage?
Generally, you need to be 60 years or older to take out a reverse mortgage.
For a couple, one borrower can be a minimum 55 years of age, if the other borrower is 60 years or older.
How much can I borrow?
The amount of money you can borrow is determined by the age of the youngest borrower and the value of your property.
As a rule of thumb, the percentage of your owner-occupied home's value you can borrow is calculated as the age of the youngest borrower -40%.
For example, if one borrower is 70 and the other is 75 and own a property valued at $1,000,000. The couple can borrow (70-40) 30% x $1,000,000 = $300,000
How much income do I need to apply for a reverse mortgage?
Unlike regular home loans, your income is not used to calculate your borrowing power rather your age and value of your property.
How does a reverse mortgage affect my children's inheritence?
A reverse mortgage will affect the amount of money your children receive from the estate sale of your home.
There are options to fix the percentage of your home's value allocated to your estate.
In most cases, there is negative equity protection which means the bank cannot take claim more than the value of your home to pay for the reverse mortgage loan.
The reverse mortgage brokers at Specialty Home Loans can provide projections on how a reverse mortgage can affect your equity
What property can be used for a reverse mortgage?
Acceptable securities include standard residential properties.
It can be your owner-occupied home, investment property or holiday home.
What to find out more?
Please contact Specialty Home Loans - Brisbane Reverse Mortgage Brokers.
If you are in Brisbane, we are happy to arrange a face-to-face meeting to go through your options with reverse mortgages.