5 Important Reasons to Consider a Reverse Mortgage

A reverse mortgage is a powerful financial tool that helps homeowners 55 and over unlock a portion of the equity in their home without having to sell the property or make regular monthly payments. This type of loan can provide customers with financial flexibility, comfort, and security.

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There are many situations where taking out a reverse mortgage will make more sense than the alternative. Here are 5 important benefits of reverse mortgages over other options such as downsizing or selling assets:

1. Retain ownership of your home or investment property

A reverse mortgage allows you to access the value built up in your home without needing to sell or lose the benefits of ownership. This means that you can continue to reap the benefits from any appreciation in property value, while staying in the home and community you love. This is especially important for customers who prefer to enjoy an independent retirement, in familiar surroundings, close to family, friends and their community. For investment property owners there is both the benefit of potential property appreciation and continued rental income while still having access to funds for other needs.

2. Immediate access to funds

Reverse mortgages provide the flexibility to quickly access the funds in your property. This means you don’t have to worry about the time it would take to liquidate assets or build up funds – which is particularly useful when hit with sudden and unexpected expenses.  Inviva’s reverse mortgages provide the option to take funds as a line of credit which means you have access to funds as and when you need them - without incurring interest until funds are drawn down. This allows you to set aside funds as a contingency for any unexpected costs.

3. Preserve your retirement income and keep other assets intact

As another tool in your financial arsenal, reverse mortgages can allow you fast access to funds without compromising other assets. Accessing a reverse mortgage can allow you to preserve other income streams such as superannuation, savings or investment earnings. Similarly, reverse mortgages can ensure that you won’t need to sell any assets to meet bigger costs – allowing you to continue to enjoy returns on assets like investment properties or significant share portfolios.  

In fact, reverse mortgages can be used to bolster your retirement income. Accessing your loan as a Regular Income Payment allows you to supplement other income to keep up with cost-of-living pressures.

4. Built-in protections

Reverse mortgages are a government regulated product and come with built-in protections to ensure that any risk of escalating debt is minimised. All reverse mortgages typically come with a lifetime occupancy guarantee (where you live in the security property), as well as a no negative equity guarantee. This means that, provided you meet your loan obligations, you cannot be forced to sell or vacate your home, and you will never owe more than your home is worth.  

5. No proof of income needed

Inviva reverse mortgages only consider your assets and credit history, not your income or employment. This makes reverse mortgages a particularly powerful tool for those who are asset-rich, but cash-poor.

Reverse mortgages are not a one-size-fits-all solution and are not for everyone. You should carefully consider if taking one out is the right solution for your situation.  

With an Inviva reverse mortgage you also have:  

  • The option to secure the loan against either your home or investment property
  • A quick and easy application and approval process
  • A competitive interest rate, when compared with credit cards or other unsecured loans
  • No ongoing monthly fees, and
  • Additional availability to those 55-60 (when many other lenders only lend to 60+)

If a reverse mortgage seems like it may be the solution for your situation, you can click to learn more about our product or apply today!

The information in this article is general in nature and does not take into account your personal circumstances, objectives and financial situation. Terms and conditions, fees and charges apply.

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