has anybody in the community had anything to do with reverse mortgage companies,
any info. would be helpful
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Have a look at https://www.choice.com.au/money/property/buying/articles/reverse-mortgages-and-home-reversion-schemes.
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What I know about reverse mortgages i have read in choice. I don’t find the idea attractive but I figure that the business is attractive to the banks because the ever upward spiral of property prices underpins their risk. I wouldn’t do it myself unless it was the difference between going destitute and hungry.
Otherwise i would downsize first.
It’s hard enough for our kids to break into the property market and now with reverse mortgages allowing some baby boomers to draw down against their home essentially just to prop up a certain level of lifestyle, all the while burning thru their inheritance and maybe their kid/s only chance to move into the property market.
We are look at Reverse Mortgage to access the equity in our home.
I’d love to hear from someone who has done this already!
I accidentally deleted this before!
Has anyone used a reputable Reverse Mortgage provider?
Any advice would be welcome!
Does your home have an existing mortgage?
In what region of Australia is it located, and which insurance risks is it subject to?
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We are in Newcastle-no existing mortgage. We are considering a reverse mortgage
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I have an existing reverse mortgage with BankWest. While there is nothing wrong with this bank, the interest rate is now about 9% which is very high. I use the funds for investment purposes so not too bad. However, I would consider this very carefully before diving in.
Assuming this is part of a retirement strategy to support you later in life the following may be of value.
Independent advice is important in our experience. In addition ASIC offer the following, and on their web site various assessments.
‘Using ASIC's reverse mortgage calculator | ASIC
At current interest rates, it’s unlikely any reliable investment will out perform, hence how funds are used needs careful consideration. The interest costs will balloon rapidly compared to the forced low interest rate period we’ve just come out of.
Banks also offer Home Equity or Investment loans.
These are a different product likely not readily obtainable as one nears retirement.
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With any financial products, especially those which one is not familiar, it is important to get independent advice based n your own needs and circumstances. Independent being separate from those organisations which sell the products and someone who one has faith/trust in. The money spent getting such advice may pay dividends in the long run.
With products like reverse mortgages, it might also be prudent to discuss it with family members as they may be impacted in the long term (after one’s death) from such products. Discussion with family might prevent a ‘rude shock’ later.
