MELBOURNE MORTGAGE FINANCE LENDING UPDATE – July 2026
Updated: Aug 20
Melbourne Mortgage Finance (accredited broker since 2006) specialises in arranging Reverse Mortgage Loans for seniors over the age of 60. If you do not offer this type of loan, please call at any time for loan information and a quick assessment of your scenario. A Referrer Agreement can readily be arranged.
Understanding Reverse Mortgages
Reverse mortgages can be a valuable financial tool for homeowners. They allow you to unlock the equity in your home without having to sell it. This means you can enjoy your retirement while staying in the comfort of your own home. Many people use these funds for various purposes, such as home repairs, medical expenses, or even travel.
Typical Borrowers
The average age of the primary borrower is about 73.
Most applicants are retired and receiving an age pension. Some are still working, which is permitted.
Many applicants still have mortgage debt and/or credit card debt with high, unsustainable monthly repayments.
Existing debts are paid out, and the applicants’ monthly cash flow is vastly improved.
Most applicants have minimal superannuation balances or cash reserves.
Nearly all applicants do not want to be forced to sell their home and down-grade (at great cost).
Most applicants include an additional Cash Reserve component to cover future needs.
Other common purposes include home repairs, travel, medical expenses, and funds for the cost of living.
The average approved credit limit is about $350,000.
Available Loan Options
There are several loan options available to suit different needs:
8.85% for a normal loan with no interest payments.
8.35% for loans with half “interest only” monthly payments.
7.85% for loans with full “interest only” monthly repayments.
8.35% for refinance loans that pay out existing mortgage debt and include a limited Cash Reserve component.
Note: Interest is charged only on drawn funds, not on undrawn funds still held in Cash Reserve.
Applications Lodged by Power of Attorney
Lenders allow applications to be lodged by an authorised Power of Attorney (POA). These applications are usually submitted by a family member seeking aged care funding for a parent. The POA document must be certified by the family solicitor and checked by the lender’s Legal Department. The POA signs the loan application and loan contract on behalf of the parent.
Independent Legal Advice
ASIC regulations require borrowers to receive solicitor advice before signing a loan contract. The solicitor must provide a signed certificate confirming that legal advice has been given. After signing, the solicitor returns all documents to the lender.
Loan Structure: Options
There are various options for structuring your loan:
Up-front cash advance at settlement: This is for paying out debts or any immediate need.
Monthly income: An agreed monthly payment can boost your income.
Cash reserve fund: Additional funds held by the lender for future needs.
Note: The loan contract can include all three options.
Maximum Loan Amounts
The maximum loan amount is calculated based on the age of the younger applicant and increases by 1% each year. Here’s how it works:
At age 60, the maximum loan is 20% of the property value.
At age 70, the maximum loan is 30% of the property value.
At age 80, the maximum loan is 40% of the property value.
At age 90, the maximum loan is 50% of the property value.
These limits are imposed by the financial regulator ASIC.
Conclusion
Reverse mortgages can provide financial relief and flexibility for seniors. They allow you to access the equity in your home without the need to sell. If you’re considering this option, it’s essential to understand the details and implications. I encourage you to reach out for more information or to discuss your individual scenario.
For more information or to discuss your individual scenario, please call 0437417042 or email barry@mmfinance.com.au. A referral fee of 15% of the 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 of July 2026)
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