MELBOURNE MORTGAGE FINANCE LENDING UPDATE – June 2026
- Barry Le Brocq
- Jun 24
- 3 min read
Updated: Jul 23
Melbourne Mortgage Finance SPECIALISES in arranging Reverse Mortgage loans for seniors over the age of 60…. that’s all we do. If you wish to arrange loan funds, please call for immediate assistance.
Understanding Reverse Mortgages
A reverse mortgage can be a valuable financial tool for homeowners. It allows you to tap into the equity of your home without having to sell it. This means you can enjoy your retirement comfortably while still living in your beloved home.
Basic Eligibility Criteria
To qualify for a reverse mortgage, there are some basic criteria you need to meet:
The maximum number of borrowers is two, and at least one must be over 60.
Applicants must own a suitable residential property to offer as security. This can be your home, a holiday house, or a rental property.
The older you are, the more you can borrow. Your borrowing capacity is based on the age of the younger borrower:
- At 60, you can borrow up to 20% of your property's value.
- At 70, you can borrow up to 30%.
- At 80, you can borrow up to 40%.
- At 90 or older, you can borrow up to 50%.
The minimum loan term is one year. Loans for shorter terms should generally be funded by bridging finance.
Acceptable Loan Purposes
Reverse mortgages can be used for various purposes, including:
Normal consumer expenses such as renovations, travel, medical costs, and living expenses.
Establishing a Cash Reserve fund.
Loans for gifting or investment purposes require letters of advice from Centrelink or a financial planner.
Loans for business purposes, commercial ventures, or new house construction are not available.
Current Variable Rates
Understanding the current variable rates is crucial:
The normal rate is 8.85% if no interest payments are made.
If you make half “interest only” monthly payments, the rate drops to 8.35%.
Full “interest only” monthly payments bring the rate down to 7.85%.
Interest is charged only on drawn funds, not on undrawn funds held in Cash Reserve by the lender.
Borrower Obligations
As a borrower, you have certain obligations:
Obtain independent legal advice when signing the loan contract.
Maintain council rates and building insurance payments.
If you select a discount rate, you must maintain monthly “interest only” payments.
Major Advantages of a Reverse Mortgage Loan
There are several advantages to consider:
You are not forced to sell your home if you run out of savings or superannuation.
It eliminates the huge costs associated with selling and buying a home, which can be up to $100,000.
You can remain in your local community, close to your church, club, neighbourhood, and friends.
Funds can be used to pay off loans that involve expensive monthly repayments in retirement.
A normal loan does not require any monthly payments, and there is a guaranteed right of occupancy.
Types of Reverse Mortgage Loans
There are different types of reverse mortgage loans available:
Normal: This type is for borrowers with typical goals such as debt clearance, renovations, travel, or establishing a Cash Reserve fund.
Age Care: In these cases, a Power of Attorney usually acts for elderly borrowers who are moving into aged care facilities.
Conclusion
If you’re considering a reverse mortgage, it’s essential to understand your options and obligations. This financial tool can help you unlock your home equity, allowing you to enjoy a comfortable retirement without the need to sell your home.
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 at June 2026)
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