Many older Australians are asset rich but cash poor. This type of mortgage allows you to take some of the equity out of your property. This allows you access to extra funds that are otherwise ‘locked’ in your house.

A reverse mortgage is a complex product that can have a significant impact on your finances and relationships, and your quality of life in retirement.
Here are some important things to consider before you decide to take out a reverse mortgage.

1) How do ‘reverse mortgages’ work?
2) How much can you borrow?
3) How can you take the loan in one go or in instalments?
4)How much will it cost?
5) What are the risks of a reverse mortgage?
6) What is the impact on my Centrelink payments?
7) Check SEQUAL membership
8) Get independent legal advice
9) Government introduced Negative equity protection so you don’t end up owning the bank more than your property is worth