Reverse Mortgage Home Loan
Dynamic loans also provide clients with access to Reverse Mortgages. Reverse Mortgages are particularly focussed on assisting older clients who have paid off most of their mortgage, but have come across a scenario where they require funds. A reverse mortgage allows you to borrow money using the equity in your home as security. The loan can be taken as a lump sum, a regular income stream, a line of credit or a combination of these options. Lenders will normally lend up to 30% of the property value (i.e. If your property is worth $600,000, up to $180,000 of the equity can be used, less any amounts that are still owed).
Interest is charged like any other loan, except you don’t have to make repayments while you live in your home – the interest compounds over time and is added to your loan balance. You remain the owner of your house and can stay in it for as long as you want. This provides the benefit for older borrowers in that they don’t have to sell your house to retire and downsize. You must repay the loan in full (including interest and fees) when you sell your home or die or, in most cases, if you move into aged care. Enquire today with one of our experienced brokers to evaluate your options.