Accessing additional funds from your reverse mortgage

by Darren Moffatt on May 5, 2008

  • Sumo

When establishing a reverse mortage, it is usually a good idea to provision for your future needs within the loan structure as well. In addition to borrowing a lump sum for your immediate needs, you can often also set up a ‘cash reserve’ or ‘line of credit’ that can act as an emergency fund for future use.

In this way you can avoid ‘top up’ fees that the banks will charge if you have to formally request additional funds in future. There is no interest charged on the money in the cash reserve that don’t use.

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