Reverse mortgage services in Melbourne: what to expect and where to get help

What must a broker or lender give you?

Australian law sets out specific steps for reverse mortgages. Before a lender or broker assesses you for one, they must:

• show you projections, using the reverse mortgage calculator on ASIC's Moneysmart website, of how the loan balance and your home equity could change over time, including if interest rates or property values change
• give you a printed copy of those projections
• give you a reverse mortgage information statement

(National Consumer Credit Protection Act 2009, s133DB)

A broker must also give you a credit guide. It sets out who they are, their licence details, the fees you may pay, the commissions they are likely to receive from lenders, and how to make a complaint.

How are reverse mortgage brokers paid?

Brokers are generally paid commission by the lender when a loan settles. In some cases a fee may apply. Either way, it should be set out in the credit guide, and you can ask about it before you go ahead. You can read how this site makes money.

How do you check a reverse mortgage broker in Melbourne?

Before sharing personal details, it's reasonable to ask for:

• their Australian Credit Licence number, or their credit representative number and the licence they are authorised under
• their credit guide
• how their complaints process works, and confirmation they are a member of the Australian Financial Complaints Authority (AFCA)

You can check a licence or credit representative number on ASIC's professional registers. A listing confirms they are authorised. It doesn't mean every suggestion will suit you.

Be wary of anyone who rushes you, discourages you from getting legal advice or speaking to family, or suggests borrowing to invest. Moneysmart warns that borrowing against your home to invest puts your whole home at risk. Our guide Are reverse mortgages a scam? covers the warning signs.

Where can Melbourne families get independent help?

A broker can explain the loan, but they aren't your lawyer or your Centrelink adviser. Moneysmart recommends getting independent advice before taking out any form of home equity release. In Victoria, places to start include:

• A solicitor. The Law Institute of Victoria's Find a Lawyer service can help you find one. A lawyer can go through the loan contract, explain when the loan becomes repayable, and check where anyone else living in the home stands.
• Services Australia's Financial Information Service, for how the money could affect your Age Pension or other payments.
• Seniors Rights Victoria, on 1300 368 821, if you're worried an older person is being pressured over money or their home.
• The National Debt Helpline, on 1800 007 007, for free financial counselling if bills or debts are the problem.
• Victoria Legal Aid, for free legal information.

Does it matter where in Victoria your home is?

It can. Lenders have their own rules about the types of property and locations they'll accept, and these can affect apartments, rural properties and some regional postcodes. See Which property types and postcodes do lenders accept?

How much you can borrow depends mainly on your age and your home's value. Moneysmart's guide is that at 60, the most you can borrow is likely to be 15 to 20% of your home's value, adding about 1% for each year over 60. See How much can I borrow at my age?

Can family be involved in the conversation?

Yes, and we'd encourage it. A reverse mortgage affects the people you live with and what you leave behind. When you ask a broker to contact you, you can say you'd like a family member on the call.

The decision is still yours. Adult children often have strong views, and it helps to look at the same projections together. Our stories, such as We thought Mum was making a mistake, show how other families worked through it.

What happens when you contact Fundd?

1. You fill in a short enquiry form or call 1300 038 633. The form doesn't ask about your age, income or property.
2. Our team replies by phone or email, whichever you prefer.
3. You ask your questions and talk through your options. Family are welcome, and there's no obligation to go ahead.

If a reverse mortgage looks like it could suit you, the broker will take you through the projections and give you the documents above before any application.

Frequently asked questions

Do I need to live in Melbourne to speak with Fundd?

No. Our team is based in Melbourne and meets clients in person, and we also talk with people across Australia by phone and email.

Is a broker the same as a financial adviser?

No. A mortgage broker helps with credit, meaning the loan. For advice on investments, super, tax, aged care or Centrelink, you may need a financial adviser or Services Australia, and for the contract itself, a solicitor.

Do I have to go ahead after talking to a broker?

No. Talking it through doesn't commit you to anything.

What should I bring to the first conversation?

A rough idea of your home's value, any loan still owing on it, what you'd like the money for, and any questions from family.

Talk it through

Speak with Fundd's Melbourne-based team on 1300 038 633, or ask a broker to contact you. No obligation, no pressure. A broker may tell you a reverse mortgage isn't right for you.

Control Finance Australia Pty Ltd T/A Fundd, ABN 43 641 586 843. Credit Representative Numbers 520438 and 480652, authorised under Australian Credit Licence 389328.