• “Found your dream home,  
    let McPhee Mortgage broking find the Right loan”
  • “Found your dream home,  
    let McPhee Mortgage broking find the Right loan”
  • “Found your dream home,  
    let McPhee Mortgage broking find the Right loan”
  • “Found your dream home,  
    let McPhee Mortgage broking find the Right loan”
  • “Found your dream home,  
    let McPhee Mortgage broking find the Right loan”

Equity Release Loan

A reverse mortgage is a way for seniors to enjoy a higher standard of living, particularly if they have little or no assets other than their own home.  

The lender will take a mortgage over the home and establish a line of credit the owners can then use for lifestyle spending, holidays or other purchases. Interest will be charged on the amounts drawn down and capitalised into the loan, or, this can be repaid by the borrowers.

Please note that Equity release loans may have a negative impact on Centrelink or other payments.

Benefits include: 

Increased Lifestyle: Seniors will have access to more funds, so they can live their retirement the way they hoped for.

Life tenancy: Most lenders will allow the owners to remain in the home until they pass away, even if they have drawn the loan to the limit

However, there are downsides:

Elimination of Inheritance: For those who wished to leave their home to their children, this is not an advisable option. The bank will retain the mortgage over the home until it is repaid by the children or is sold.

Rapid drawdown of funds: without discipline the line of credit could be rapidly exhausted, leaving the owner with no more funds and the mortgage over the home.