Which reverse mortgage lenders are best?

by Darren Moffatt on September 12, 2010

  • Sumo

The best reverse mortgage will depend on your own particular circumstances, and crucially, how you intend to use the money. There is never any single answer as to which is ‘the best’, and indeed the Australian reverse mortgage market changes constantly so making any sweeping recommendations is fraught with danger. One of the few certainties is that using a SEQUAL accredited equity release broker such as Seniors First can often be a  better way ensuring you find the right solution. A good equity release / reverse mortgage broker will explain how it works, list all the pros and cons, and provide easy access to multiple lenders.

Nevertheless, there are several key factors you should closely scrutinise when comparing different reverse mortgage loans:

  • the interest rate – the cheaper the better, in most cases
  • any monthly fees – try and avoid where ever possible
  • redraw fees – can be costly if used incorrectly
  • loan to value (LVR) ratios – the percentage of home equity you can release varies greatly between the banks, depending on your age

For confidential help with your reverse mortgage enquiries go to our Loan Check page or email us at info@reversemortgagewatch.com.au

{ 18 comments… read them below or add one }

Kim Baker September 17, 2010 at 8:18 am

Hi Reverse Mortgage Watch,
Can you give me some advice please?

Mum now 83 & I are currently looking at setting up a Reverse Mortgage, to free up some 100-120k of equity from her fully owned home in Five Dock (Val.~$850k) for repairs/renovation & to help us too with some of our accumulated bad debt.
I have been scouting the net & contacted Rate City’s #1 lender à Transcomm Credit Union which had an attractive interest rate of 7.35%, but unfortunately they have reached their quota & won’t be offering this facility for another few months.
I’ve exhausted my searches & can’t find anything that comes close, so started looking at brokers.
* Mum is of sound mind & we have met face to face with Centrelink –> there is only a small drop in her pension though I’ll cover that.
* Retire/Invest will be the legal sounding board for any application &
* also monthly interest will be “PAYG”, to avoid the compound effect.

Question:
With your contacts, can you give me an indication of the Best Interest rate & by what provider, that is currently available in this current market?
I have put my feelers out, though need a comparison through people in the know.

My contact # is 0430 216 776 &

In reply via Email, copy kcb24@y7mail.com too please, so I can respond day or night.

Thanking you in advance &
Look forward to hearing from you soon,

Sincerely,

Kim

sue Jenkins March 17, 2011 at 5:54 pm

Age in which I can take equity from my house I am 60yrs old this year

Terry Dean April 12, 2011 at 11:33 pm

I live in Adelaide and I would like someone to give me some advice your company agreeing to purchase part of my home which you call homesafe solutions type loan
I am 68, on the pension and have a $ 114000 mortgage at present, I think my property is worth $700,000
my property is a farm of 85 acres with a three bedroomed house which is only 4 years old
Regards Terry Dean

sue Jenkins May 9, 2011 at 1:35 pm

I would like to know more about the reverse mortgage who is the best and which bank offers this service at the age of 60yrs thanks

Carmen Murphy/Tony Hogben August 20, 2011 at 1:43 pm

I own a beachfront unit, one of a block of four, on Bribie Island, Banksia Beach and I wish to know who will lend me the most ; it’s current worth is $300,000.

Ema NEAVES August 23, 2011 at 8:54 pm

I own my own house and i am a widow and i am 64years old would i be able to go through revers mortgage to build a granny flat on my own property .Please advise Thank you

doug. murcott September 27, 2011 at 9:23 am

hello.
my partner, and myself are 64 and 65,and would like to clear the mortage,
of 100.000 the property is valued at 400.000.
is this possible? if so,what are the requirements
regards. doug.

Will October 31, 2011 at 9:32 pm

Is there a list of the companies that offer reverse mortgages?

Jenny Wilson December 3, 2011 at 5:46 pm

I am 76 yrs old and need extra money against my home my late husband and i took out a reverse mortgage a while ago with suncorp and since his death i am finding it hard to manage on a single pension and suncorp no longer offer this facility,so am trying other avenues but i am being told that because i have a bad debt this is not possible and i dont understand why as i am offering my home against this loan,not a loan to pay back straight away.

Darren Moffatt April 11, 2012 at 11:53 am

Hi Jenny, there may be options available but I need more info. Please email me at info@seniorsfirst.com.au Thanks, Darren

Ken hodby May 13, 2012 at 1:26 pm

I am 71 and have a block of rural land valued at 800,000, is it possible to get a reverse mortgage on this?

Frank Gregorace September 12, 2012 at 10:35 am

I am 59 and my wife is 55 years. Is there a Financier that would consider an application at our age for a reverse Mortgage.

Tony Dickenson November 23, 2012 at 8:27 pm

If we take out a reverse mortgage with a reputable institution and down the track that institution is taken over by (say) one of the big banks, can they vary the original contract in any way whatsoever as I have experienced in the past the change of mortgage holder FAI to Homeloans and they varied the original contract. The question I guess I am trying to ask is the initial contract a contract for the life of the reverse mortgage until either death or sale of property

Tony Dickenson November 28, 2012 at 2:15 pm

Further to my first question I would like to know if stamp duty is payable within NSW for reverse mortgage of $95,000 If so how much??
Also if we decide to initially draw down $20,000 with the reverse mortgage capped at $95,000 is there any difference in stamp duty payable or do we pay on the full amount or on the $20,000 We may never draw back more than $20,000

Marise Egglestone January 20, 2014 at 5:04 pm

Who does reverse mortgages for a 60 year old?
Property value of $450,000+ with $102,000 currently due in the Bank under a traditional loan.
I am no longer working, which lenders can help?
Thanks

Val Dworzak May 23, 2014 at 2:12 pm

This is my first enquiry re reverse mortgage. We have a property valued at around $600,000, and would require a loan of around $50,000 to $75,000 to enable repairs to be made, and to eventually help finance my husband going into a Nursing Home, by which time we may sell the property. I need to know all the costs involved, ie interest rates, stamp duty etc. Is it better to go for a larger amount and only use what we need?

Ken Fielding August 25, 2014 at 1:28 pm

my wife and I are 66 and 67 . We would like to look at a reverse mortgage as a way of getting into a motor home to do more travelling while we can. property value is approx 490k with 100k still owing. Also when the tripping is done is it possible to sell the motorhome and pay down the reverse mortgage,

Rod Reynolds May 7, 2015 at 4:51 pm

I have a house worth 350,000. I also have a interest only mortgage of 110,000.
My wife is 68 and I’m 61. Is there a company or bank that would allow me to reverse my mortgage on what I owe.

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