What are Reverse Mortgages?

June 14, 2007

Reverse mortgages are also known as 'Equity Release Loans'.

Could an extra $1,000 per month make life a lot better for an elderly person who might only have a pension or small superannuation to live on? Or, would a lump sum of say, $40,000 help meet renovations or modifications to their home to meet their needs or do you think a holiday would do them some good.

Reverse mortgages can provide a lot of benefits for an elderly person (over 60 years of age). There are no required repayments on this loan until the homeowner’s property is sold or they permanently leave the property. For the protection of the property owner this product comes with a “No negative equity guarantee” which means that the debt can never exceed the value of the property despite no loan payments being made.

To find out more about Reverse Mortgages speak to Tony at APV Sydney Finance on (02) 9545 5720.

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