Quick guide to the key points:
- How does a reverse mortgage work in Australia? It allows eligible homeowners to access part of the value of their property without selling and without needing to make regular repayments. The loan is most often repaid when the property is sold or the borrower permanently leaves.
- How does equity work in a home loan? Equity is the difference between what your home is worth and the amount you still owe on it. As your loan balance reduces or your property value increases, your available equity grows.
- How does a home equity loan work with Inviva? You can access your approved loan amount through a lump sum, monthly income, a line of credit or a combination of these. Interest is added to the balance over time, unless you choose to make repayments.
Inviva's Home Equity Release Loan is an evergreen mortgage which means it typically does not have a fixed loan term. The loan balance is generally repayable in full when the last remaining borrower permanently leaves the property, or the property is sold. If the security property is your residential home, then you’re required to occupy the property.
Inviva's Investment Property Equity Release Loan generally includes a term and does not include this occupancy condition.
All of Inviva's home equity release loans have flexible drawdown options: you can access the loan funds as an initial lump sum, a regular monthly income payment, a line of credit, or a combination of these options. You will only be charged interest on the amounts that you draw down.
With an Inviva loan, you’ll have the option to make repayments at any time. If you do make repayments, then you’ll generally be able to re-drawdown those funds again at a later stage, should you choose to.
You can use the loan for a variety of purposes - to fund the trip of a lifetime, buy a new car, renovate your home, supplement your retirement income, consolidate debt, help your kids or grandkids, and more.
Have questions about your situation? Talk to Inviva
For guidance that relates to your own circumstances, you can speak with our team at Inviva. We can help you understand how do reverse mortgages work, what the process involves and what to consider before applying.