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ARTICLE · 22 JULY 2009

Cashing Up In Troubled Times: Reverse Mortgages – An Easy Solution Or A Financial Trap?

McInnes Wilson Lawyers
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In the current economic climate, reverse mortgages seem to be growing in popularity again. It is an important time to remind potential borrowers of the benefits and risks associated with taking out such a loan.

AustraliaReal Estate and Construction
Fred Smith
Fred Smith
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The last thing you want to think about when you retire is leaving your family home. Unfortunately this is the reality for many older people as existing income sources fail to meet their financial requirements. In recent years, financial institutions have implemented a reverse mortgage scheme which seeks to remedy this situation.

In the current economic climate, reverse mortgages seem to be growing in popularity again. It is an important time to remind potential borrowers of the benefits and risks associated with taking out such a loan.

What is a reverse mortgage?

A reverse mortgage is a loan taken out by one or more borrowers against the equity of their home. The loan is distributed either as a lump sum, regular payments or as a line of credit.

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