Get the facts before signing
A reverse mortgage allows you to borrow money using the equity in your home as security. The loan can be taken as a lump sum, a regular income stream, a line of credit or a combination of these options. The older you are, the more you can borrow. Different lenders may have different policies about how much they will let you borrow.
As a general guide, if you are 60 the maximum amount you can borrow is likely to be 15-20% of the value of your home. You can usually add 1% for each year older than 60. That means if you are 70, the maximum amount you could borrow would be about 25-30%.
The minimum amount you can borrow may depend on the provider. It could be as low as $10,000. Keep in mind that if you borrow the maximum amount now, you may not have access to any more money later.
A reverse mortgage makes it possible to borrow money by using the equity in your home as security. The loan can be availed in different ways either as a lump sum, regular income stream, line of credit or a mix of these options. The reverse mortgage amount that you can borrow depends upon your lender as different lenders have different policies. However, the general principles that guide reverse mortgage include the following:
• The older you are, the more you can borrow.
• If you are 60 years, the maximum you can borrow will be around 15-20% of the value of your home. If you are aged above 60, add 1% for each year , to the existing percentage.
• At 70, you can approximately borrow 25-30%.
The minimum amount that you can avail as loan will depend upon the lender you choose to borrow from. The least can be as low as $ 10,000. However, if you borrow the maximum amount initially, you cannot ask for more later.
Are you looking out for Mortgage brokers in Hawthorn & Mortgage brokers in Kew? Get in touch with us to schedule an appointment. Grange Finance is located in Melbourne and can help you find the best reverse mortgage in Australia. Our knowledgeable mortgage brokers in Hawthorn and Kew will guide you through all the steps to make the process convenient for you. We are here to offer expert help to all your financial queries with regard to reverse mortgage. Make smart financial choices with Grange finance for a fulfilling experience.
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