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
(Information is correct as at 03.08.22)
