MELBOURNE MORTGAGE FINANCE LENDING UPDATE – November 2025
- Barry Le Brocq
- Nov 24
- 2 min read
Melbourne Mortgage Finance specialises in arranging Reverse Mortgage loans. We assist customers over the age of
60 who need finance for any personal reason. Referral fees are available for loans that proceed to settlement and are paid the month after settlement.
Paying Off Existing Debts
clearance of existing debts is the most common reason for establishing reverse mortgage loans
these include: home loans, equity access loans, investment loans, credit card and personal loan debt
average age of applicants is 73 and most are still making high P&I monthly repayments on these debts
by this age, most applicants have retired and cannot afford high repayments
these debts can all be cleared at settlement and customers can make voluntary interest payments at any time
Other Reasons for Reverse Mortgage Loans
arranging monthly income streams over a 5-year period
funding repairs and renovations to current residence
funding consumer needs including a new car, medical expenses or overseas travel
funding access to an Age Care facility
establishing a Cash Reserve fund to pay for future needs (interest is not charged on funds held in Cash Reserve)
Interest Rate Options
8.35% if no interest payments are made (the normal rate)
7.85% if regular half interest payments are made
7.35% if regular full interest payments are made
if agreed interest payments are missed 3 months in a row, the rate reverts to the normal rate
interest is charged only on funds drawn, not on funds held in Cash Reserve
Independent Legal Advice
a requirement is that borrowers must receive legal advice before signing their loan contract
loan contract documents are usually signed at the solicitor’s office
the solicitor returns a signed certificate that legal advice has been provided
Acceptable Security Properties
property valuation should generally be at least $600,000 (lower values can be considered individually)
properties should be located in capital cities or in major regional centres
acceptable properties: established houses, strata tile units, holiday homes, investment properties
unacceptable properties: vacant land, commercial, retirement villages, new house construction
titles should be in the names of borrowers, not in company or trust names
Maximum Loan Amounts
maximum Credit Limits are calculated using the age of the younger applicant
at 60, the maximum Credit Limit is 20% of property value, increasing by 1% each year thereafter
at 70, the maximum Credit Limit is 30% of property value
at 80, the maximum Credit Limit is 40% of property value
at 90, the maximum Credit Limit is 50% of property value
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 November 2025)
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