Reverse Mortgage Income
A reverse mortgage opens a world of possibilities in retirement

Working with us, understand the importance of securing a comfortable retirement and maximising your income. Our experienced advisors will guide you through your home equity release options, helping you boost your retirement income, preserve your home, and provide ongoing support to help you navigate the world of reverse mortgages for a worry-free retirement.

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An alternative funding option to boost your retirement income and live the life you've earned.

Home equity release programs enable homeowners, particularly seniors, to access the equity tied up in their property without needing to sell it. These programs provide financial solutions that allow you to convert a portion of your home equity into cash or regular income while retaining ownership of your property.

Why Home Equity Release?

Imagine unlocking the hidden value of your home for income without selling it. With a reverse mortgage, you can do just that.

How does it work? 

It is a specialised loan secured against your residential property, allowing you to access funds in income or a lump sum based on its equity.

The best part?

No regular repayments. Instead, the loan balance, including interest, is repaid when you sell the property, in some cases upon moving into Aged care or transfer the property to the Estate.

Our Capabilities

At BMP Wealth, we are here to guide you through this exciting financial opportunity while safeguarding your future. Let's delve into the concept of reverse mortgages, their benefits, risks, and how our expert advisors can help you make the most of this innovative retirement solution.

Suppose you are considering ways to explore alternative income opportunities through an equity release program such as reverse mortgages. Here’s how we assist you on this financial journey:

  1. Expert Guidance: Our seasoned financial advisors specialise in retirement planning. We provide personalised advice tailored to your unique circumstances and goals.
  2. Comprehensive Analysis: We conduct a thorough financial assessment, analysing your property value, income requirements, and eligibility for government benefits. This ensures the best outcome for your retirement.
  3. Program Evaluation: We evaluate different home equity release programs to find the perfect fit for you. Our team compares features, benefits, and risks to guide you toward the ideal program type.
  4. Risk Mitigation: We help you understand and mitigate potential risks associated with reverse mortgages, ensuring your financial security remains intact.
  5. Collaboration with Legal Experts: Our network includes experienced solicitors specialising in reverse mortgages. They will review all legal aspects, safeguarding your rights and ensuring compliance.
  6. Ongoing Support: As your circumstances evolve, we provide continual support and monitoring. Count on us to adapt your reverse mortgage strategy or explore alternative solutions when needed.

A reverse mortgage is a loan secured against a residential property, where the borrower receives funds based on the equity in their home. Unlike traditional mortgages, there are no regular repayments required. Instead, the loan balance, including accrued interest, is repaid when the borrower sells the property, moves into aged care, or passes away.

In Australia, two types of equity release programs are available: the government-run Pension Loan Scheme and private-sector reverse mortgages. Here’s an overview of each program, including how they work and their limitations:

  1. Pension Loan Scheme (PLS):
  • Run by the Australian government, specifically the Department of Social Services.
  • Available to eligible retirees who own real estate in Australia and receive a part or no pension.
  • Allows retirees to access the equity in their home in the form of a loan, which is secured against the property.
  • The loan amount can be received as a fortnightly or monthly income stream, a lump sum, or a combination of both.
  • Interest is charged on the loan, typically at a lower rate than commercial options.
  • The loan, including the interest, is repaid when the property is sold or from the retiree’s estate.
  • Limitations: The main limitation is that the PLS is only available to those who meet specific eligibility criteria and own real estate in Australia. There are also limits on the amount that can be borrowed, subject to periodic changes.
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  1. Private-Sector Reverse Mortgages:
  • They are offered by various financial institutions and non-bank lenders in Australia.
  • Available to retirees who own their own homes or have a significant amount of equity in their property.
  • Reverse mortgages allow homeowners to borrow against the equity in their property without selling it or making regular repayments.
  • The loan amount can be received as a lump sum, regular income payments, a line of credit, or a combination of these options.
  • Interest is charged on the loan, which compounds over time and is typically higher than standard home loan rates.
  • The loan is repaid when the property is sold, and the homeowner permanently moves out or upon their passing.
  • Limitations: Private-sector reverse mortgages usually have age restrictions, and the maximum loan amount is determined based on factors such as the borrower’s age, the value of the property, and the loan provider’s policies. These loans can significantly reduce the inheritance for beneficiaries and may have upfront fees and ongoing costs.
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It’s important for retirees to carefully consider the terms, conditions, fees, and interest rates associated with equity release programs. Seeking independent financial advice is highly recommended to understand the potential impacts on personal finances, future Aged care needs, and any government entitlements. 

Unlocking the potential of reverse mortgages can transform your retirement journey in remarkable ways:

  1. Boosted Income: Supplement your Age Pension with an additional income source, empowering you to enjoy the lifestyle you deserve.
  2. Unleash Financial Flexibility: Customise your payment options to receive funds as a lump sum, regular income, or a line of credit. It’s your choice!
  3. Repayment Peace of Mind: Bid farewell to the stress of regular repayments. With a reverse mortgage, you only repay the loan when specific triggering events occur.
  4. Preserve Your Home: Continue to reside in your beloved home while accessing its value. Reverse mortgages allow you to retain ownership and benefit from potential property price appreciation.

While reverse mortgages offer remarkable benefits, it’s crucial to be aware of the risks involved:

  1. Accrued Interest: Over time, interest accumulates, potentially reducing the equity available in your property. Look for programs with a “no negative equity guarantee” for added protection.
  2. Long-Term Impact: Consider the impact on your heirs or beneficiaries, as the loan balance could affect their inheritance. We can guide you through strategies to address this concern.
  3. Market Fluctuations: Keep an eye on the housing market. Property value fluctuations can impact the equity available to you. Rest assured; our expert advisors stay informed to help you make informed decisions.

What can you do with a reverse mortgage?

You can use your Reverse Equity Mortgage proceeds (income or lump sum cash) to improve your lifestyle

Day-To-Day Expenses

You can use a home equity release to help cover living expenses.

Pay Off Debt

Unlock home equity to consolidate or pay off existing debt, including credit card bills.

Aged / Home Care

You can maintain ownership of your house and utilise a reverse mortgage to help cover Aged care and home care cost.

Buy A Car

Purchase a new car, upgrade your current vehicle, or cover repairs to an existing automobile.

Travel & Holidays

A reverse mortgage can be used to fund holidays expenses or finance trips to see family and friends.

Home Improvements

You can use a reverse mortgage loan to make home improvements or repairs to your home.