A reverse mortgage is a loan secured against your home that allows you to access a portion of your equity as a lump sum, regular payments, or a line of credit.
Unlike a standard home loan, you are not required to make ongoing repayments. Instead, interest is added to the loan balance over time. The loan is typically repaid when the property is sold, or when you move out permanently.
This type of lending is designed for older homeowners who have built up equity and want to use it without selling their home.
Lenders assess reverse mortgage applications differently to traditional loans.
The key factors include:
Because there are no regular repayments, servicing is not assessed in the same way. Instead, the lender focuses on the security property and the long term position of the borrower.
The amount you can access is usually a percentage of the property value and increases with age.
A reverse mortgage may be considered where you want to access equity without selling your home.
This can include:
It’s important to understand that the loan balance increases over time, which reduces the equity remaining in the property. This is why it needs to be considered carefully as part of your broader financial position.
Reverse mortgages are a specialised product with specific rules, protections, and long term implications.
We help you understand how the loan works, how it will impact your equity over time, and whether it suits your situation before proceeding. We also compare lenders and structures to ensure the loan aligns with your needs.
If you’re considering accessing the equity in your home, speak with Peter Marcs Finance and we’ll walk you through how a reverse mortgage works and what to consider.
