Which banks are best for reverse mortgage?

by Darren Moffatt on April 30, 2009

  • Sumo

Not all banks provide reverse mortgages, and of those that do, there is a big difference between the cost and features of the products they provide.

Our recent reverse mortgage survey found that on a loan of $100,000, there is difference of $26,000 in total interest and fees over a twenty year period, between the cheapest and most expensive reverse mortgages currently available to seniors in Australia. That’s more of your money needlessly going towards fat bank profits !

That’s why it’s so important to shop around yourself, or obtain the assistance of a SEQUAL accredited equity release broker

{ 7 comments… read them below or add one }

Maureen Hornibrook March 9, 2012 at 1:44 pm

Could you tell which banks claimed the most interest. I am trying to get all the information i can before approaching anybody so that I can make an informed choice. Thank you.

A and L Maasland March 20, 2012 at 2:31 pm

We are looking to borrow $120,000 to pay out our current mortgage of $42,000 as well as pay off bank cards, overdraft and buy a new vehicle

Eileen Still March 28, 2012 at 2:23 pm

I am wanting to access the equity in my property . I live in Mcrae Victoria in the mornington pennisula . I have a low mortgage of $134000 and the property is worth approximately $370,000 , I am one year off 60 and have an knee injury and as a result unemployed, unfortunately, I dont have any superannuation.or extra cash flow. I am currently with ING Direct who I dont think have the reverse mortgage option. Do you know of a financial institution who has the reverse mortgage option with low fees please.
Thank-you

Darren Moffatt April 11, 2012 at 11:49 am

Hi Eileen, unfortunately no – your request is not currently possible. There are no reverse mortgage providers who lend to people under 60, and even if they did the level of debt you have against the house is too high. Even at age 65, the max you would be able to borrow is 25% of the home value – $92,000. Sorry, you may have to consider selling the house. In the interim you should ask ING about their “hardship provisions”. These are protections in the contract designed to help people who have suffered injury/poor health. It won’t solve your problem but it may but it may buy you time. Hope this helps, Darren.

Darren Moffatt April 11, 2012 at 11:51 am

Hi there, please email me with more details at info@seniorsfirst.com.au and I will try and help. Regards, Darren

Jane Reid November 5, 2012 at 7:58 pm

Hi Darren,
I intend to sell my unit (valued about $750,000 with $60,000 owing) in March/April 2013.
In the meantime I have some urgent medical/dental work that needs to be done ASAP (about $70,000).
I am wanting to apply for an Equity Unlocked loan for $70,000 but am 62 not 65.
I am not eligible for a ‘top up’ on my existing loan as I am low income.

I am on a Disability Support Pension and am unable to work.
My bank (CBA) says everything okay except I am too young.

I feel this is very unfair. In my circumstances – DSP, own about $700,000 in my unit, unable to wait until 65 or until next year when I can sell and need this work done almost immediately – surely there is an institution that will bend the rules just a bit?

Jane

John Balnaves July 26, 2014 at 2:04 pm

I am interested in taking out a reverse mortgage on my $425,000 home in Adelaide. Please send me some information on reverse mortgages

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