Monday, March 21, 2005

Reverse Mortgage in Australia

What is a Reverse Mortgage?

A Reverse Mortgage allows asset rich but income poor homeowners to borrow against the equity they have built up in their home without having to make payments on the principal or interest.

Property prices all over Australia have surged by more than 50% in recent years giving existing home owners substantial equity to use for securing a loan - Equity is the difference between what you owe on your mortgage and what the property is actually worth (according to the bank!). Sometimes this type of loan is referred to as a Home Equity Conversion Loan.

The size of the mortgage that is available to you depends on the amount of equity you have in your home and you may be required to take it as a lump sum. Click on the link below to get a free quote on a Reverse Mortgage.

Reverse Mortgages are commonly used to repair or upgrade the home, take a holiday, or to purchase expensive items like a car.

The downside of a reverse mortgage is that it can double in size in as little as 7 years (or sooner in certain conditions) due to the compounding effect of capitalised interest rates and fees.

Click here to find out more or get a free quote...