MELBOURNE MORTGAGE FINANCE LENDING UPDATE – May 2025
- Barry Le Brocq
- May 19
- 2 min read
Updated: Jul 22
Primary Loan Purposes
most applications involve payout of existing mortgage debt and/or credit card debt
other purposes: home improvements, travel, vehicle purchase, in-home care
financing access to an aged care facility
establishing a Cash Reserve fund for future needs
Acceptable Security Properties
owner-occupied residence is the most common security property
holiday homes and investment properties also acceptable, but valuations are reduced by 10%
commercial properties, farms, vacant land and retirement village units are unacceptable
properties must be in reasonable condition and located in an acceptable postcode area
maximum of two owners on title
Funding Options
immediate cash out or debt clearance on settlement day
establishing a monthly income stream (maximum 5 year period)
establishing a Cash Reserve facility for future use
any combination of the above options is permitted
Age Requirements
at least one applicant must be over the age of 60
second applicant may be 55 or more
LVR will be reduced where second applicant is under 60
Interest Charges
interest is charged only on funds actually draw
interest is not charged on funds retained by the lender (e.g. undrawn Cash Reserve funds)
interest on drawn funds is calculated daily and posted to the account monthly
Payment Options
nil payments: most borrowers do not make any payments
half “interest only” payments: 0.5% rate discount applies
full “interest only” payments: 1.0% rate discount applies
full loan balance repayment is required upon sale of property or death of last surviving borrower
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 May 2025)
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