Tags: Reverse MortgageVariable / Fixed | 30.11.10

Is a Reverse Mortgage Home Loan Right For You?

If you are over the age of 65 and in need of cash for one reason or another, and you have equity in your home, you may be eligible for an Australian home loan called a reverse mortgage. A reverse mortgage is a loan that allows you, the homeowner, to borrow equity against the value in your home. Unlike a traditional mortgage you won't need to make any payments on the home loan. The loan will be due only when you decide to sell or leave the home for one reason or the other.

How much equity can you take out on your home?

That depends on the home's current value and the lender of choice. Requirements do vary from lender to lender. Here's a look at what the requirements You'll have to satisfy to secure a reverse mortgage home loan.

The two sides to a reverse mortgage

If you can meet the above requirements, the next thing to consider before taking out a reverse mortgage is the pros and cons.

The pros

The cons

What to do next?

Before taking out a reverse home loan mortgage, you will want to weigh the pros and cons and take the time to work with a financial planner or accountant. They can help assess what your financial needs are and if a reverse mortgage is really right for you. You should also consult with your family members to see how they feel about the reverse mortgage idea. If you do decide to go ahead with it, make sure you shop around to different lenders to find the best interest rates and best deal overall

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