MELBOURNE MORTGAGE FINANCE LENDING UPDATE – February 2026
- Barry Le Brocq
- Feb 17
- 2 min read
Melbourne Mortgage Finance has provided a specialist reverse mortgage broking service since 2006. If your customers require a reverse mortgage loan, but you don’t offer this loan type, I can assist your customer on a direct referral basis. Referral fee available and paid after settlement.
Typical Customer Profile
average age of primary applicant is around 73
most applicants have minimal superannuation balances or cash reserves
most applicants are retired or nearing retirement
many applicants still have home loan and credit card debt which require high monthly P&I repayments, these repayments are difficult to maintain and often delay retirement plans
“Retirement Refinance” Product
can be used to pay out existing mortgage debt, eliminate repayments and free up customer cash flow
no loan payments are required, so earlier retirement can be considered
a $25,000 Cash Reserve contingency fund (to meet future needs) can be included in this loan
reduced rate of 8.10% / voluntary interest payments can be made at any time
Range of Product Options
8.60% normal loan rate with no interest payments required
8.10% reduced rate if half interest only payments are made
7.60% reduced rate if full interest only payments are made
8.10% reduced rate for “Retirement Refinance” product / no interest payments required
Loan Features
minimum loan $50,000 / maximum $5m
interest payments not required, but lower rates are available if regular interest payments are made
interest is charged only on funds drawn, but is not charged on funds held in Cash Reserve
principal borrower must be at least 60 years of age
the older you are, the more you can borrow ….at 60, maximum loan is 20% of valuation / this increases by 1% each year
e.g at 70, maximum is 30% / at 80, maximum is 40% / at 90, maximum is 50%
normal establishment fee is a flat $950 (including valuation) for properties valued at up to $2.0m
drawdown from Cash Reserve fund can be arranged at any time without charge
security properties include: residential homes, strata units, holiday homes, investment properties ( not retirement village units)
guaranteed ongoing right of occupancy with no risk of foreclosure
Unacceptable Loan Purposes
customers wanting to provide large gifts / tight Centrelink “gifting” limits can jeopardise ongoing pension eligibility
customers wanting funds for business purposes
customers wanting new loans on top of existing loans / excessive debt is not encouraged
customers who have addiction problems e.g regular gambling expenses detected on bank statements
Benefits of Reverse Mortgage Loans
age 80 / immediate advance $215,000 to clear mortgage / $45,000 in Cash Reserve
age 67 / immediate advance $150,000 to clear card debts / $200,000 in Cash Reserve
age 90 / immediate advance $50,000 to clear mortgage / $200,000 for aged care entry
age 74 / immediate advance $475,000 to clear mortgage & cards / $70,000 in Cash Reserve
average initial drawdown $222,000 / average total Credit Limit $351,000
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 February 2026)
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