Are you over 55 and considering tapping into your home equity to fund a more comfortable retirement? One of the first questions you may have is ‘how long does it take to get approved for a reverse mortgage? ’.
Unlike a normal home loan or personal refinancing, a reverse mortgage involves specialised consumer-protection processes designed to safeguard you, your wealth, and your family home.
From your first consultation with one of our experienced mortgage brokers to the final settlement and receiving your funds, the entire reverse mortgage process can typically take between four and six weeks*.
Are you ready to explore how accessing home equity through a reverse mortgage can help your family? Contact us today for a free, no-obligation consultation, or try our Reverse Mortgage Calculator.
The Reverse Mortgage Timeline
The reverse mortgage process can’t be rushed, and that is for good reason. The timeline itself is split into multiple phases:
Consultation and Collection (1-2 Weeks)
Through the initial consultation, your mortgage broker will review your situation, discussing your age, financial goals, your property type and current financial situation to ensure that a reverse mortgage is the right move for you. Our brokers will only recommend a reverse mortgage for suitable applicants.
They will then gather all the relevant documentation, including identity documentation, a rundown of assets and liabilities and your regular living expenses.
Application and Assessment (1-2 Weeks)
The next step is finalising your loan application before submitting it to the selected lender. After an initial assessment of your application, the lender will then order a valuation of your home. This allows the lender to determine the equity you have available to unlock in your property based on your age. All this information will be reviewed under the National Consumer Credit Protection guidelines before a formal approval is issued.
Safeguards and Settlement (1-2 Weeks)
Before you can proceed with a reverse mortgage contract in Australia, you are legally required to meet with a solicitor. They will be required to review the reverse mortgage agreement with you to ensure that you understand how compounding interest works and the No Negative Equity Guarantee.
After these legal sign-offs are completed and submitted, your loan can then be settled, and the funds can finally be distributed to you, whether as a lump sum or a regular monthly income stream (depending on what you choose).
How Can You Speed Up or Delay a Reverse Mortgage Approval?
While 4 to 6 weeks is the benchmark, there are a few variables that could possibly change that timeline for better or worse.
How to Speed up a Reverse Mortgage Approval
Have your identity documents and property information ready to go on day one so your broker can process your paperwork sooner. You can also pre-book a meeting with your solicitor (in consultation with your broker) to avoid the waiting process to speak to them.
Another easy way to speed up the process is to complete our free reverse mortgage calculator to see if you are eligible and how much you can borrow.
What Can Delay a Reverse Mortgage Approval
Common causes for delay include booking a solicitor who isn’t familiar with the reverse mortgage process, not having paperwork prepared, or not having an answer to financial questions that can determine if you are approved for a reverse mortgage.
How to Get a Reverse Mortgage Timeline Estimate
Every property and person’s situation is unique, and as such, everyone’s timeline can differ. The easiest way to get an estimate on a timeline is to speak to a reverse mortgage broker.
Get in touch with Your Home Equity today for a free, no-obligation consultation.
*Disclaimer: Timeframes are indicative only and subject to change. Timeframes can vary from person to person depending on situations and complications. Speak to one of our reverse mortgage specialists for a more accurate timeline for your own personal situation.
The information in this article is general in nature and has been prepared without taking into account the needs, objectives, or financial situation of any particular individual. Individuals should consider their own circumstances and, if necessary, seek professional advice. All reverse mortgage products are subject to the terms, conditions and approval criteria of the lenders and fees and charges apply.
Equity Mortgage Specialists Pty Ltd trading as Your Home Equity / Corporate Credit Representative (No. 530659) and Scott Phillips, Authorised Credit Representative (No. 547787) of QED Services Pty Ltd trading as Pursuit Broker Services / Australian Credit Licence 387856 / ACN 147 272 295
