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MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 03.08.22

REVERSE MORTGAGE LOANS FOR SENIORS


General Information

  • a reverse mortgage allows customers to borrow money using their home as security for the loan

  • applicants must be at least 60 years of age and may be retired or part-time employees

  • a suitable property is required as security for the loan (residence / holiday house / rental property)

  • loans can be structured as follows: up-front cash advance and Cash Reserve funds retained by lender until needed

  • interest is only charged on cash actually advanced (no interest is charged on funds retained in Cash Reserve)

  • funds are available for normal personal use including refinance of existing debt (funds are not available for construction or business purposes)

  • Aged Care option: funds are available for those residing in or moving into permanent long-term care

  • loan servicing capability does not need to be demonstrated

  • loan repayments are not required, but voluntary interest payments or lump sum payments can be made

  • allow approximately 6 weeks for settlement from date of application lodgement

  • applications can be lodged in applicant’s own name or by a Power of Attorney acting on behalf of the applicant

  • family involvement in application discussions is recommended but is not mandatory

Loan Details

  • at 60, customers can borrow up to 20% of property value, then an extra 1% per year (e.g. at age 70, customers can borrow up to 30% of property value)

  • loan amount restrictions apply for holiday homes / rental properties / rural properties / Aged Care loans

  • fees for properties valued up to $2m: application fee $495 / valuation fee $350 (quote if value exceeds $2m)

  • customers are required to obtain independent legal advice from their own solicitor when signing loan contracts

  • mortgage discharge fees will be payable to current lender if existing mortgage loan is being refinanced

  • variable rate is 7.1% (as at 03.08.22)…subject to change by lender

Broker Service

  • Melbourne Mortgage Finance has specialised in arranging reverse mortgage loans since 2006

  • a no-obligation service is available to any potential applicants who wish to discuss their loan scenario

  • we prepare the full application and lodge it directly with the lender on the borrower’s behalf

  • applications can be prepared by email or a personal visit to the customer’s home can be arranged

  • follow-up with the lender and with the customer’s solicitor is always required leading up to settlement

  • our support is available for the life of the loan and half yearly loan reviews are conducted

  • we generally do not charge a broker fee unless customers require smaller loans under $100,000 or if the loan is fully discharged within 12 months from settlement date

  • many customer testimonials are available on our website


Barry Le Brocq

Melbourne Mortgage Finance (Reverse Mortgage loan specialists)

Patterson Lakes

Mobile 0437417042

www.mmfinance.com.au


(Information is correct as at 03.08.22)



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