A Bank recently introduced a new ‘reverse mortgage’ style loan for borrowers at least 70 years of age in Sydney and Melbourne. It appears to be similar to a shared equity loan (Muslim Loan).
The product involves a home owner agreeing to
relinquish a fixed percentage of the future proceeds of a house when the owner sells the house, or after the death of the owner and his or her partner.The borrower can receive up to $200,000 or up to 50 per cent of the property’s value depending on age and property growth rates.
After death, or at the sale of the house, the estate or vendor would retain the same percentage
stake in their home.Robert Bou-Hamdan
Mortgage Adviser
You must be logged in to reply to this topic. If you don't have an account, you can register here.
