Glossary - reverse mortgage

reverse mortgage

A type of home loan used in retirement as a way for people to access the equity in their home. The loan amount depends on your age, the value of the home and how it is taken (lump sum, regular payments or draw down as needed). Interest is added to the loan and does not have to be repaid until the house is sold, usually as part of a deceased estate.

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Last updated: 27 Sep 2011