Reverse Mortgage

A reverse mortgage allows you to access the equity in your home through a loan facility that doesn't require repayment until you vacate the property. The amount you can borrow is a function of your age and the value of your home. The older you are, the more you can borrow. The Loan to Value ratio - or LVR - increases by 1% for each year older than 60. As a guide, if you're aged 60, the maximum amount you can borrow is 15% of the value of your home and if you're aged 75, the maximum amount you could borrow would be 30%.

For more info, download our free  'what is a reverse mortgage guide' or try our equity calculator, call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The purpose of taking out a reverse mortgage loan is to improve your long term retirement funding; it enables you to access the savings in your home without needing to sell it. That way, your home can be both the best place to live and the right way to fund your retirement.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The key benefit a reverse mortgage is to improve your long term retirement funding. This, in turn, enables you to:

• Increase your retirement income
• Improve your retirement lifestyle
• Remain living in your own home
• Look forward with confidence

Most importantly, a reverse mortgage allows you to enjoy the retirement you’ve worked hard for.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Our customers have approached us with a diverse range of needs. These include:

• Setting up a regular income facility
• Refinancing an existing mortgage
• Renovating or modifying their home to ensure it’s retirement ready
• Covering an unexpected medical expense
• Buying a new car
• Helping children or grandchildren buy their first home
• Funding in-home care expenses
• Funding the transition to residential aged care.

We find many of our customers simply like the security that comes from having a contingency fund for those unexpected expenses that can crop up from time to time.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Your loan is generally repaid from the future sale of your home. This may occur if you downsize later in retirement or you move into residential aged care. Alternatively, the loan will be paid from the proceeds of your estate.

Of course, if you are able to repay the loan earlier, you can do so without penalty.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Reverse mortgages are governed by the National Consumer Credit Protection Act 2009; these protections apply to our Household Loan as well as other reverse mortgage products.

1]   You remain the owner of your home and the title remains in your name. This gives you 100% exposure to any growth (or loss) in the value of your property, into the future.

2]   You have guaranteed lifetime occupancy. You cannot be removed from your home by the lender, nor be forced to sell your home at any time against your will, as long as you have met your obligations under the loan, as specified in the terms and conditions of the loan contract.

You do have a responsibility to remain living in your home, to ensure the council rates are paid, to keep it insured and to keep your home well maintained.

3]   You cannot end up owing us more than the house is worth. The “no negative equity guarantee” (NNEG) clause, introduced in 2012, means you are protected by law and cannot owe more than your home is worth, irrespective of the value of the property.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

A number of banks provide lines of credit or home equity loans that allow homeowners to access the wealth built up in their property.

However, getting credit from the banks has become tougher for retirees since the 2018 Royal Commission into the banking sector. Any form of credit has become less available to retirees who may not have the income to demonstrate they can meet the required repayments.

The regular repayments needed to service a home equity loan or line of credit are likely to reduce your cash flow and therefore your retirement income. Each month, you have to find the funds to satisfy the bank. Many retired Australians tell us they feel insecure knowing their home is subject to repossession in the event being unable to meet repayments.

With a reverse mortgage, you don’t need to make regular repayments, although you can choose to do so. And whatever choice you make, you have guaranteed lifetime occupancy – you can stay in your home for as long as you choose.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.