Equity Release Mortgages

Are Sometimes called Reverse Mortgages, they are a variable or fixed rate loans, designed to for people 60 years or over who own their home but have little cash to cover everyday living expenses or large financial outlays such as home renovations, an overseas holiday or a new car.

The loan is secured against their owner-occupied property and no regular repayments are required as long as borrower lives in the home. Repayment is deferred until all borrowers are deceased, the property is sold, or borrowers are no longer living in the house (whichever occurs first).

Some examples of where an equity release product may be beneficial include:

• Insufficient superannuation to provide a sufficient level of income.

• Desire to increase super contributions late in career - maximise tax relief through salary sacrifice and use the equity release to offset the income loss.

• Long term investors wishing to preserve their portfolio.

• Divorce proceedings - meet settlement obligations without a property sale.

• "Stay in Place" widows - equity release replaces deceased spouse income.