Question 1

Will I lose my home if I get a Reverse Mortgage?

Accepted Answer

No. As long as you maintain the conditions of the equity release arrangements and meet the commitments relating to home ownership including rates, etc, you will not lose your home. You do not have to sell your home with a Reverse Mortgage.

Question 2

Is a Reverse Mortgage a safe form of borrowing?

Accepted Answer

While all loans may pose risks, a Reverse Mortgage is widely considered as a safe product for retirees and pensioners. When approving this type of product, lenders must adhere to the regulations in complying with the National Consumer Credit Protection Act. A key element of the act is the No Negative Equity Guarantee.

Question 3

What can home equity release funds be used for?

Accepted Answer

Funds accessed through a home equity release may be used for many purposes including travel, property repairs, medical expenses, supplementing income, and assisting others. Some purposes such as savings, investments and gifts to family may impact pension entitlements.

Question 4

Is Stamp Duty payable on a Reverse Mortgage?

Accepted Answer

No. Stamp Duty is only applicable on the transfer of ownership of a property. A Reverse Mortgage does not involve a transfer of ownership.

Question 5

How is interest calculated on a Reverse Mortgage?

Accepted Answer

A variable interest rate applies to home equity release products. As no regular repayments are required, the interest compounds until the debt is finalised.

Question 6

When do I pay back the funds?

Accepted Answer

Home equity release funds plus the total interest accrued on the funds is payable when the home is sold or the individual passes away or moves into a care facility and is no longer residing in the property.

Question 7

How much can I borrow with a Reverse Mortgage?

Accepted Answer

The maximum amount that lenders release with a Reverse Mortgage is 50% of the home's value.

Question 8

Can I get a Reverse Mortgage if I have a home loan on the property?

Accepted Answer

No. To be eligible for a home equity release, applicants must own the home with no loan.

Question 9

Do I need to pay income tax on funds accessed through a Reverse Mortgage?

Accepted Answer

Individual circumstances can vary, but a release of home equity may not be subject to income tax. Individuals should confirm their circumstances with the ATO or their accountant.

Reverse Mortgage — Get Yes Experts to Unlock Your Home Equity!

Reverse Mortgage — Get Yes Experts to Unlock Your Home Equity!

How does a Reverse Mortgage work?

What are the benefits of a Reverse Mortgage?

How does a Yes broker assist with arranging a Reverse Mortgage?

Ready to access equity in your home? Apply for a Reverse Mortgage

Speak to an Expert About Reverse Mortgages Today!