Frequently Asked Questions
- How much can I borrow?
The amount you can borrow is determined by the age of the youngest borrower and calculated as a percentage of the house value. The older a Senior becomes, the more they can borrow. - What purpose can I borrow?
The loan proceeds can be used for any worthwhile purpose - Do I have to make repayments?
No. There is no need to make repayments, but you can if you wish. - Will my loan ever exceed the value of my house?
No. There is a “No Negative Equity Guarantee” whereby the loan will never exceed the value of your house. You can also seek to maintain a minimum amount of equity. - Do I lose Ownership of my House?
No. The Reverse Mortgage is a loan secured on your property and is not a sale of your property. You retain full ownership. - Will I need legal advice?
Yes. You will be required to seek independent legal advice from a solicitor of your choice - Will a Reverse Mortgage affect my pension?
A Reverse Mortgage may affect your pension and you should discuss your situation with a Centrelink Financial Information Officer. An appointment can be arranged by ringing Centrelink on 13 23 00
Can I have a lump sum now and some more later?
Yes,you can access up to your maximum, either as a lump sum now, a flexible drawdown which is kept for when you may need it, or a regular periodical payment to boost your your income. You may also have a combination of the above.