Home Loan Options for Adelaide Investors and Families: Reverse Mortgages
A reverse mortgage allows you to borrow against the equity in your own home during retirement. This kind of loan is available to residential property owners who are retired and meet the age criteria of the lender. Unlike a regular home loan, a reverse mortgage doesn’t require regular repayments. The loan is repaid either when the borrower sells their home, moves into a retirement home or passes away.
This type of loan may affect the borrower and their family and it is advisable to inform everyone before making a decision. It is important to also speak to your accountant, financial planner and a solicitor before entering into a reverse mortgage agreement.
Different lenders offer different age entry levels and the percentage of equity you can leverage depends upon your age. It is important that the lender you deal with offers a No Negative Equity guarantee. It is advisable that you talk to a broker that has access to multiple lenders that offer this kind of loan. It is also advisable to talk to a broker that has successfully attained the SEQUAL accreditation, giving you peace of mind that they have the expertise to assist you in making an informed decision.