Reverse Morgages

[WebBoard]

From: Brad Mobbs


I have heard mention of a housing loan called a reverse mortgage that seems to allow older retired people with property holdings to borrow some of their equity to help in their retirement and not have to make any repayments. The loan principle and interest is taken out of the estate when it is sold. My parents are in a situation where this might be a possible course of action but i can't find any information on the internet that relates to Australia. Seems popular in the US though. Does anyone have any info on how these type of mortgages work or know of web sites that might have some info. I would be keen to know of interest rates etc
Many thanks
Brad

 

[michaelg]

Reply: 1
From: Michael G


Hi,

Check a website called www.reverse.org

And you can buy a book at Dymocks called Sell & Stay.

That should give you the basics.

Michael

 

[Mike]

Reply: 2
From: Mike .


Hi Brad,

Check out this previous thread for ideas:
http://bne003w.server-web.com/read?3241,30e#3241

If a Reverse Mortgage is the same as a Home Equity Conversion Scheme (HECS), then some of the major banks have this type of product. Check websites of major banks and insurance companies for retirement income products.

Regards, Mike