[Seia Ibanez]

Member's Question: 'Any advice about reverse mortgages?'​

To member NeddyJ, kindly contact us at [email protected] or send me a message so we can get provide details on your query. Thank you!

Hey there, members!

We’re wrapping up the week with another round of our ‘Members Helping Members’ segment: your space to share tips, advice, and a little wisdom with each other.

For today, here's a question from member @NeddyJ:

I'm wondering whether anyone has any advice about reverse mortgages please? We're in a bit of an awkward situation but don't want to lose the house! Lots of worrying rumours out there!

Got advice, tips, or experience to share? Comment down below!

If you also want to ask a question or for advice, you can always send yours via our anonymous form or simply post in our Members Helping Members forum!

 

[MelanieJune]

Unfortunately I don’t even know what reverse mortgages means, but I wanted to share that I was terrified of losing the home I’ve been living in for the last 8 years. Then my son bought the house so that I may be safe from homelessness. I hope every Senior gets to keep the roof over their heads.
source:%20Household%20Capital%E2%84%A2
https://share.google/izhjEDAP7c7s5EI7C

 

[Catherines]

No advice from me about this topic. All I suggest is proper and more accurate advice from a legal person because another member will give information in their own ‘language
and their understanding of implications’ and might present with some missing points of legality. Where ‘big money’ is involved it’s best to get professional advice.

 

[Vickers]

Unfortunately I don’t even know what reverse mortgages means, but I wanted to share that I was terrified of losing the home I’ve been living in for the last 8 years. Then my son bought the house so that I may be safe from homelessness. I hope every Senior gets to keep the roof over their heads.
source:%20Household%20Capital%E2%84%A2
https://share.google/izhjEDAP7c7s5EI7C

I am a broker and hav done / am doing quite a few Reverse Mortgages for older people - the max loan amount is based on the age of the youngest borrower and value of the property. The loan amount is not a high LVR (Loan to value ratio) eg a 60yr old can borrow up to 20% of the value and a 70yr old 30%. Goes up by 1% for every year. You still need to prove you can meet LIVING expenses (rates, power, food etc) but don't need to make any repayments if you don't wish to or can't but IF you don't the balance increases slowly over time. so need to be aware of "future" equity but hopefully the value will increase over time also, You never need to repay the loan until you pass away or sell the property. IF you have enough equity, they also have a regular "cash advance" option. Not many lenders doing them. Happy to assist anyone.

 

[Suzanne rose]

A friend of mine is looking at taking out a reverse mortgage. They only have one daughter . Our friend inherited her mother's home and is now living in it with her husband.
They have only one child a daughter who now lives in my friends previous family home and has just completely renovated it. The title is still in my friends name as its still her house. This house will one day be her daughters as will the house my friend is living in. Both houses are over $1.5 million.

My friend is looking at taking out the reverse mortgage of $300,000 just to give them cash to finish renovating the house they are now living in and to go on holidays.
Her husband is still working she is retired although she is only 64.

She said it can be paid back when they pass away and that her daughter will have both houses.

I told her she needs to look into it thoroughly as by the time they pass away and it becomes their daughters a huge amount may need to be paid back.

It's great for people that have no one they are leaving it too. If I didn't have children I would do it but even then I would be worried if changes came in that I would lose my home.

 

[Suzanne rose]

This should help you and its a government website with all the information, calculators, pros and cons

https://moneysmart.gov.au/retirement-income-sources/reverse-mortgage-calculator

 

[Catherines]

I am a broker and hav done / am doing quite a few Reverse Mortgages for older people - the max loan amount is based on the age of the youngest borrower and value of the property. The loan amount is not a high LVR (Loan to value ratio) eg a 60yr old can borrow up to 20% of the value and a 70yr old 30%. Goes up by 1% for every year. You still need to prove you can meet LIVING expenses (rates, power, food etc) but don't need to make any repayments if you don't wish to or can't but IF you don't the balance increases slowly over time. so need to be aware of "future" equity but hopefully the value will increase over time also, You never need to repay the loan until you pass away or sell the property. IF you have enough equity, they also have a regular "cash advance" option. Not many lenders doing them. Happy to assist anyone.

Your response, @Vickers, was a good one and I hope the original enquirer will take advice from a reverse mortgage loan expert, be it you or someone else. Thank you for helping those who wish to go down this path.

 

[Vickers]

How do I give them my details? as sounds easy to do

 

[Catherines]

How do I give them my details? as sounds easy to do

Best to try to do a proper in-person consultation if sourcing someone but I don’t know where Vickers (on this site) lives - in your state, town or anywhere near you?. I believe one can respond privately to anyone on this site so you may need to contact SDC for their advice.

 

[Beate]

After much research we did our reverse mortgage through Centrelink . It’s been a lifesaver for us and a few of our friends who did the same .Those xtra $ topping up our pension is just what we need to still live relatively comfortable and stress free . There is a Home equity company that will take care of all the ins and outs for you , if interested I can give you their number . Centrelink we found to be the cheapest interest . Life throws us a few challenges as we get older , so anything to make that easier is

 

[Seia Ibanez]

Hello member NeddyJ! It seems we couldn't find your profile here in the forum

Kindly contact us at [email protected] so we can give you more details on your query

 

[Whits]

After much research we did our reverse mortgage through Centrelink . It’s been a lifesaver for us and a few of our friends who did the same .Those xtra $ topping up our pension is just what we need to still live relatively comfortable and stress free . There is a Home equity company that will take care of all the ins and outs for you , if interested I can give you their number . Centrelink we found to be the cheapest interest . Life throws us a few challenges as we get older , so anything to make that easier is

Hi, Thank you for sharing this information. I am very interested and would love the number of the Home Equity Company. Thanks Kerrie.