What are my payments?
Interest is charged like any other loan, but you don't need to make repayments while you live in your home. The loan must be repaid in full if you sell your home or die, in most cases, if you move into aged care.
What are the interest rates?
Typically, interest rates are higher on a reverse mortgage than a typical home loan.
How's interest charged?
You will be charged interest on the loan amount you borrow. Fees and interest are added to the loan balance as you go, and the interest compounds. This means you will pay interest on interest. For example, if you borrow $50,000 at say 8.5%, in 10 years you would owe $116,632 if you make no payments.
If you'd like more information, contact us on firstname.lastname@example.org
More information can also be found on the Australia government's MoneySmart website: https://moneysmart.gov.au/retirement-income/reverse-mortgage-and-home-equity-release