Seniors Loans - Reverse Mortgages

Seniors Access Home Loan or Reverse Mortgage is a variable or fixed rate loan or even a Line of Credit specifically designed to assist people 60 years or over who own their home but have little cash for everyday living or things such as home renovations, an overseas holiday or a new car. The amount you can borrow is calculate on a certain percentage of the valuation of your home and the age of the applicants. This amount varies from lender to lender.

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

The loan will need to be repaid should the owner/s wish to lease/rent the property or have boarders within the premises.

The Loan enables retired people to utilise the equity in their home and allows the borrower to draw down on the loan at regular intervals or a lump sum payment .

Many retired people are now finding the increasing cost of living is eating into their savings and eroding their standard of living. These people have their home as their major asset but they are reluctant to sell and downgrade their home to generate cash. The type of loan is aimed specifically at these "asset rich, income poor" retirees and pensioners to remain in their home while being able to maintain a more comfortable lifestyle in retirement.

It is a complex product and varies from lender to lender, so it is best to contact JBA Finance to discuss the product in more detail or arrange for a FREE appointment.