MELBOURNE MORTGAGE FINANCE LENDING UPDATE – August 2025
- Barry Le Brocq
- Aug 22
- 2 min read
What is a Reverse Mortgage?
a loan to people over the age of 60 for approved purposes, whether they are working or retired
applicants access some of the equity in their home to fund retirement needs
formal monthly loan repayments are not required, but can be made voluntarily
if repayments are not made, the loan balance will increase rather than decrease
“Big 4” banks (and their subsidiaries) all stopped assisting seniors in 2019
specialist lenders now assist Australia’s expanding over-60 age group with reverse mortgage loans
Most Common Reasons for Reverse Mortgage Loans
increase regular monthly income (in addition to the age pension or superannuation drawings) to improve retirement living
create a Cash Reserve fund for future needs and unexpected expenses
refinance a home loan and other debts which still exist at retirement and eliminate high repayments
purchase a new car, fund medical expenses or travel plans
Customer Protections for Reverse Mortgage Borrowers
guaranteed occupancy: customers can remain in their home as long as they want
full ownership: customers retain full ownership of the property in their own names
no negative equity: the loan value can never exceed the property value
independent legal advice: customer’s solicitor ensures a full understanding of the loan contract
Centrelink advice: customers are encouraged to discuss the impact of a loan on current pension
family involvement: applicants are encouraged to have family members participate
Benefits Experienced by Reverse Mortgage Customers
customers are not forced to sell their home and leave their local community
customers are not forced to meet the huge expense of selling and buying elsewhere
high loan repayments on existing loans can be eliminated with a reverse mortgage loan
customers keep all capital gains which are not shared with the lender
peace of mind that comes from consolidating all current debts into one loan
knowing that Cash Reserve funds are available when the need arises
What is the Normal Loan Procedure?
meeting with customer to complete loan application and supporting documents
application lodged with lender
preliminary assessment conducted
valuation arranged
final assessment prior to file being sent to Credit Manager
formal approval by Credit Manager
loan contracts issued and signed in presence of customer solicitor
signed documents checked
settlement arranged
Call on 0437417042 or email barry@mmfinance.com.au to discuss individual scenarios.
Referral fee (15% of normal up-front commission) is available
Barry Le Brocq (B. Ec. / Dip. Fin. Services)
Melbourne Mortgage Finance (Reverse Mortgage Loan Specialist)
Mobile 0437417042
(Information is correct as at August 2025)
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