MELBOURNE MORTGAGE FINANCE LENDING UPDATE – September 2026
Common Reasons for Reverse Mortgage Applications
superannuation funds have expired
savings are low and cost of living is overwhelming
customers are tired of struggling to survive on minimal income with no cash reserves
important projects cannot be funded without help (travel, medical issues, home repairs)
eliminating stress by arranging a Cash Reserve fund to finance future needs
eliminating old debts which currently require high monthly repayments
funds can be borrowed with no requirement to make repayments
need to fund access to an aged care facility
Seniors Prefer to Remain in their Existing Home
many applicants have lived in their family home for 20 years or more
over 90% of seniors prefer to remain in their home and local community
the immediate cost of selling, purchasing and relocating can reach $100,000
this expense far exceeds the 8.85% interest charge on a $100,000 reverse mortgage in one year: $10,100
Types of Reverse Mortgage Loans
normal loans: for normal consumer purposes
aged care loans: to fund entry into an aged care facility
normal variable rate of 8.85% applies to both loan types / no repayments required
Independent Legal Advice is Required
ASIC regulations require that seniors receive independent legal advice when signing loan contract
solicitors must provide a signed certificate that legal advice has been provided to the borrowers
borrowers should get an acceptable quote for this service first / quotes can range from $600 to $3,000
lenders do not require borrowers to receive independent financial advice
Borrower Safeguards
a detailed lender Product Guide is provided
a detailed ASIC reverse mortgage information sheet is provided
borrowers are encouraged to have family members, solicitor or financial planner attend interview
lender always calls borrowers soon after receiving the application to discuss loan understanding
borrowers must receive further legal advice from their solicitor when signing loan contract
Interest Charges and Payment of Loan Funds
interest is charged only on drawn funds / no interest is charged on undrawn funds
funds held in Cash Reserve are interest-free and available to borrowers at any time
borrowers are free to make voluntary interest payments or lump sum payments at any time
requests for advances from Cash Reserve are usually advanced within 2 days
application forms are not needed for withdrawals / no withdrawal fees are charged
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 September 2026)
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