Darren Moffatt, Seniors First founder, has been quoted in a recent article published by Forbes Advisor.
The post written by Jessica Mudditt explained reverse mortgages, which allows a homeowner to borrow money using the equity as security.
Here’s an excerpt:
Reverse mortgage lenders apply different criteria, but as a general rule, as a person gets older they are able to access a higher proportion of the equity in their home.
“There are fairly strict guidelines in terms of the loan to value ratio (LVR) that borrowers can release,” says Darren Moffatt, founder and managing director of Seniors First. “It’s all determined by age and linked to life expectancies.”
For example, a person over 60 may be able to access funds worth 15% or 20% of the total property value. As a guide, add 1% for every year past 60.