Reverse Mortgages are growing in popularity with older Australians and are part of every retirement planners toolkit, but the details of this product remains a mystery to many.
A Reverse Mortgage allows a qualifying client to borrow money using the equity in their home as security.
The product allows a client to access equity for cashflow and stay in their home. They don’t have to make repayments while living there.
Since 2012, Reverse Mortgages have included negative equity protection. This means the clients can’t end up owing the lender more than their home is worth.