MELBOURNE MORTGAGE FINANCE LENDING UPDATE – April 2025
- Barry Le Brocq
- Apr 17
- 2 min read
Lower interest rates are available if regular “interest only” payments are made
with no interest payments, the base rate is 8.85%
with regular half “Interest only” payments, the rate reduces to 8.35%
with regular full “interest only” payments, the rate reduces further to 7.85%
if borrowers miss three interest payments, the rate automatically reverts to the base rate
Types of acceptable security properties
normal residential properties are acceptable securities (subject to postcode location)
acceptable: established residential homes, strata title units, holiday homes and investment properties
unacceptable: retirement village units, commercial properties, company and trust properties
loan applications must be in the same names as names on title
The older you are, the more you can borrow
minimum age for Reverse Mortgage applicants is 60
at age 60, the maximum loan amount is 20% of property value
this increases by 1% for each year over the age of 60 e.g. at age 70, maximum loan is 30%
at age 90 or over, maximum loan is 50% of property value e.g. for aged care placement
Redraw is available
if lump sum amounts are voluntarily paid off the loan principal, this money can be redrawn later
a “redraw” facility can only be used to redraw principal sums paid off the loan balance
Flat $950 establishment fee
this flat fee applies to loans with security properties are valued up to $2m
if the security property is valued over $2m, an additional valuation fee is charged
Lender does not become co-owner of the security property
the lender has normal 1st mortgage security over the borrowers’ property
the borrowers remain full owners of the property and retain all future capital gain
the lender does become co-owner of the property with normal Reverse Mortgage loans
Barry Le Brocq
Melbourne Mortgage Finance (Reverse Mortgage loan specialists)
Patterson Lakes
Mobile 0437417042
(Information is correct as at April 2025)
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