HOBSONS Bay and Wyndham retirees are warned to make sure they have all the facts before entering into a reverse mortgage.
MP for Altona Lynne Kosky said reverse mortgages, also known as equity release products, appealed to people approaching or in retirement with property assets and little income.
“Unlike an ordinary mortgage, which allows you to borrow money to buy a house, a reverse mortgage assumes you have already paid your home loan in full,” Ms Kosky said.
“The usual structure of reverse mortgages is no repayment needs to be made until you either die, sell the house or move out permanently in which case the lender will be fully repaid.”
Call Consumer Affairs Victoria on 1300 558 181 for more details.
