MELBOURNE MORTGAGE FINANCE LENDING UPDATE – October 2026
Melbourne Mortgage Finance specialises in Reverse Mortgage lending. Many seniors own their own home, but have run out of savings or superannuation. Seniors need funds for a variety of reasons, particularly the paying out of existing debts or the funding of urgent projects.
If you do not offer reverse mortgage loans, please call … a Referrer Agreement is available. I’m happy to chat with you about any scenario.
Paying Out Existing Debts
this is the most common reason for reverse mortgage loan applications
most applicants are still paying off current mortgage loans, credit card debt, personal loans or family debt
when employment income ceases, high monthly loan repayments become a serious drain on cash flow
all debts can be paid out and all monthly loan repayments will cease
New Interest Rates: Product Options
8.99% normal loan with no repayments
7.99% normal loan with full interest payments
8.49% normal loan with half interest payments
8.49% refinance/ retirement loan with no repayments
Advantages of Reverse Mortgage Loans
funds are readily available to over 60s who own a suitable security property
applicants are not forced to sell up and downgrade at an immediate cost of up to $100,000
applicants can remain in their family home and in their valued local community groups
funds can be structured as required: immediate cash, monthly income, cash reserve fund for the future
interest is charged only on funds actually drawn, not on the approved Credit Limit
Permitted Uses of Loan Funds
reverse mortgage loan funds must be used for the benefit of the applicants only
permitted consumer purposes: debt clearance, renovations, travel, monthly income
funds cannot be used for business purposes or to benefit third parties
where gifting is involved, a written Centrelink opinion will be required that pensions are not jeopardised
funds can be used for the purchase of a residence under Contract of Sale finance condition (not auctions)
Lender Does Not Become a Co-owner of the Property
the lender’s security is a normal 1st mortgage over the security property (existing mortgages must be discharged)
the lender does not become a co-owner of the property (this does occur with some lenders e.g Adelaide Bank’s “Home Safe” product)
borrowers retain full ownership of the property and retain all future capital gain during the life of the loan
Acceptable Security Properties
normal residential properties in capital cities and regional centres are nearly always accepted
properties in isolated postcode areas will be assessed on a “case by case” basis
acceptable: homes, units, holiday homes, investment properties
unacceptable: vacant land, commercial properties, operating farms, retirement village units, properties held in the name of a company or a family trust
Barry Le Brocq (B. Ec. / Dip. Fin. Services)
Melbourne Mortgage Finance (Reverse Mortgage Loan Specialist)
Mobile: 0437417042
(Information is correct as of October 2026)
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