Reverse Mortgage


Reverse Mortgages are still a relatively new, interesting and exciting loan product to hit the Australian Financial Services industry in as many years. This is a loan product designed specifically for retirees who are essentially asset rich but cash poor. A classic example would be a retired person who lives in a fully unencumbered home worth $800,000, has little or no retirement savings, and lives on a meagre government pension.

A Reverse Mortgage allows people over the age of 60, who own their own home, to access the hard earned equity in their home, while continuing to live in, and enjoy their home.

We believe it is a potential solution to provide retirees with a comfortable and dignified retirement.

As the name suggests, a Reverse Mortgage is the opposite of a conventional mortgage in that it converts the equity in your home into cash (income).

How do I receive the funds ?
The funds drawn can be taken as a lump sum, regular monthly payments, or a combination of both.

What can I use the funds for ?
The money drawn can be used for any personal or investment purpose you wish, however we do recommend you seek financial advice before investing any funds drawn from a Reverse Mortgage due to potential Centrelink implications.

No Negative Equity Guarantee
This ensures that neither you or your beneficiaries will never owe the lender more than the value of your home. The risk of any potential shortfall is carried by the lender.

Portability
This enables you to "Substitute Security" - move homes and keep the same loan. It's convenient because you save the time and trouble of establishing a new loan.

Do I need to make any repayments?
You are not required to make any repayments until the property is sold or passed on to your estate; however, you can make principal and interest, or interest only repayments if you wish.
What Interest Rate Options are available?
You can choose from fixed, variable or capped rate options depending on your personal circumstances and personal preferences.

How much can I borrow ?
How much you can borrow depends upon your age. The older you are, the more you can borrow. If you choose to take your payments by instalments, you will generally be able to borrow more than if you take a lump sum. If you are married, the amount you can borrow is based upon the age of the youngest person in the marriage.

Can I "Top Up" my reverse Mortgage in the future ?
Yes you can up to your age based Reverse Mortgage limits

For further information or to speak with one of our consultants please CLICK HERE

RCR Finance PTY LTD
Tel:03 9726 2000
Fax:03 9720 2397
info@rcrfinance.com.au