you may not need to pay off significantly more than the worth of your property. This really is called the вЂno negative equity guaranteeвЂ™.
Read the reverse home loan information declaration
Each time a loan provider gives you a reverse mortgage they need to provide you with a ‘reverse home loan information statement’, containing:
- factual statements about what sort of reverse mortgage works
- here is how expenses are calculated
- things to think about before you take out a reverse mortgage
- of good use contacts to learn more.
Reverse home loan projections
Your credit provider or credit support provider must offer you projections about any proposed reverse home loan вЂ“ in individual вЂ“ before you are taking away a reverse mortgage. These projections should be constructed with the opposite mortgage calculator on ASICвЂ™s Moneysmart site.
These projections will show the result a reverse mortgage might have regarding the equity at home as time passes and show the possible effect of great interest prices and home cost motions. You should be offered a printed copy among these projections.
Loans of $2,000 or less
Loan providers have already been prohibited from providing loans of $2,000 or less that must definitely be paid back in 15 times or less.