Simple steps to get you started!
For most Australians, staying in their own home is important in retirement.
We’ll show you how to use your home equity to achieve your goals, and remain in the place you love, with our easy to follow process.
Check eligibility
Use our online calculator to get started OR book a free appointment with our qualified and friendly team.
Consultation process
We’ll work with you to understand exactly what you need so we can find the right loan for you.
Submit application
We’ll help you gather all the required information to make the application process as smooth, stress free, and efficient as possible.
Property valuation
After we’ve selected the best loan and lender to meet your needs, we’ll work with you and the lender to arrange an independent valuation of your property (as per the lender’s requirements).
Loan approval
You’ll receive written approval from the lender, subject to the loan contract and other conditions being satisfied.
Reverse mortgage contracts issued
Loan contracts will be sent directly to you or your lawyer for signing.
Independent legal advice
It is a requirement that you seek independent legal advice as part of the process. This means you will need to meet with your lawyer to review the loan contract, and sign the relevant documents back to the lender.
Settlement
Funds will be dispersed by the lender to your nominated bank account.
Annual check in
We’ll check in with you each year to make sure everything is on track.
How much could I borrow?
Structuring your reverse mortgage
Once we’ve found the best loan, we’ll help you work out the right structure to suit your particular needs.
The most important options for you to consider when taking out a reverse mortgage are whether you will require:
- Lump sum funds – Receiving your funds as a whole payment upon settlement, most suited to refinances and big purchases.
- Income top up – Receiving a series of monthly payments over an agreed term, also called an instalment option.
- Cash reserve (line of credit) – Receiving a funding limit under your loan from which you can draw funds periodically as required.
- Further advances – The ability to draw down additional equity in the future.
- Loan portability – The ability to transfer your reverse mortgage loan to another acceptable security property.
- Aged care funding – The ability to move into residential aged care without having to repay the loan until you choose to sell your home.
- Investment property or holiday home as security – The ability to secure your reverse mortgage loan against your investment property.
Our team will help find the solution that best meets your needs as part of the loan suitability assessment and application process.
Independent legal advice
It is a requirement in Australia that all borrowers of reverse mortgage loans receive independent legal advice before entering into the loan contract.
You can nominate to see your own lawyer if you have one, or we can assist you to find qualified legal professionals convenient to you.
The loan contracts will be sent to you or your lawyer directly. Your lawyer will then take you through the terms and conditions of the contract, ensuring that you fully understand them, before signing the documents and submiting them back to the lender.
Government regulated
The Australian reverse mortgage industry including all lenders and brokers, has been regulated by the Australian Securities and Investments Commission (ASIC) since 2009.
As a result, there are certain processes and procedures that all industry participants (brokers and lenders) must follow in order to comply with regulations, which have been put in place to protect reverse mortgage borrowers.
Brokers and lenders must ensure that a reverse mortgage is “not unsuitable” for a borrower before proceeding through to an application.
Specific information from ASIC in relation to how the reverse mortgage works, compounding interest, how costs are calculated and potential equity erosion must also be provided to all borrowers prior to commencing a reverse mortgage loan application.
Our team will take you through the process in full and provide you with all the required information but in the meantime, you can find out more at Moneysmart.
