Seniors Equity Release

Reverse Mortgages are available to older Australians enabling them to access the equity in their home in retirement. Enshrined in legislation, there are maximum loan to value ratio loan amounts determined by the age of the youngest borrower to a maximum of approximately 40%. The borrowers are not required to make loan repayments which are added to the loan so the balance grows over time.  The funds can be used for any purpose.  The trigger for the loan to be repaid is the sale of the security property or the death of the borrower but the lender cannot claim any more than the value of the property even if the debt is greater. This ensures that the borrowers do not leave a debt for their dependants.  Independent legal and financial advice is required so that the borrowers are fully aware of the implications, including that the security property asset and its inheritance value for their dependants are likely to be impacted.