Today, Household Capital, Heartland and some smaller lenders provide reverse mortgages. A reverse mortgage allows you to borrow money using your home equity as collateral. Addressing some of the outstanding concerns about these products, Prime Minister Morrison described the in-country reverse mortgage program as one that allows additional options for the nation's seniors. However, there are still several banks that offer reverse mortgages, including G%26C Mutual Bank, Heritage Bank, IMB Bank and P%26N Bank, to name a few, as well as other specialized lenders such as Heartland Seniors Finance.
Several lenders resurfaced to be active with new loans, and there are rumors that other lenders will soon offer exciting new reverse mortgage loans for pensioners and retirees. Senior's First has developed a reputation as an award-winning reverse mortgage broker and a trusted name among public policy organizations, the elderly care industry, senior groups, older borrowers and their families. These are some of the market leading features that have led more than 21,000 Australians to choose Heartland as their reverse mortgage provider. If you are an older Australian who owns your own home, you may have heard of using a reverse mortgage as a way to borrow money with the equity you have accumulated in your home.
In response to the “toxic sales culture” of reverse mortgage lenders, the Australian government began to introduce stricter regulation around reverse mortgage lenders. Your lender or broker should review reverse mortgage projections with you, which show the impact on your home's equity over time. And if you plan to leave your property to your children, understand that taking out a reverse mortgage could substantially reduce your inheritance. The possibility of reverse mortgage loans getting out of hand can become a problem, especially if customers rely entirely on loans as their only real source of extra money.
That said, reverse mortgages are not risk-free and anyone who wants to access the burden-free value of their home should have a good understanding of the basics. The new reverse mortgage program will be open to all age-eligible pensioners in Australia, including those who have self-financed their retirements, according to the publication. That's why reverse mortgages could be a useful option for older homeowners and retirees who want access to an easily usable source of funds, but don't want to sell or completely give up ownership of their homes. A reverse mortgage allows you to free up some of your home's equity now so you can spend it to cover costs and finance part of your retirement.
If unexpected and costly health care problems continue to appear, or other financial concerns of a repetitive nature occur, relying solely on a reverse mortgage can become quite dangerous. In anticipation of this, Seniors First, Australia's leading reverse mortgage broker, has relaunched.