Reverse mortgages are available to seniors (generally over 60 years of age) who wish to access the equity in their home. This equity can be in the form of a lump sum payment of cash, a regular ongoing payment, or a combination of the two. The amount accessible through one of these loans is dependent on the borrower's age, and on the value of their property.
The most recognisable feature of a reverse mortgage is that it does not require any regular repayments. Interest is capitalised on top of the loan each month, and full repayment of the loan is only required by the borrower's estate, or if the security is sold. Applicants are therefore not required to prove any income to qualify for a reverse mortgage, although it is essential that they obtain both independent legal advice and independent financial advice before signing any mortgage documents.
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contact us if you would like more information about reverse mortgages.