{"id":26296,"date":"2021-02-08T22:52:53","date_gmt":"2021-02-08T22:52:53","guid":{"rendered":"https:\/\/rmolaw.com.au\/reverse-mortgages-the-risks-rules\/"},"modified":"2025-02-24T05:13:39","modified_gmt":"2025-02-24T05:13:39","slug":"reverse-mortgages-the-risks-rules","status":"publish","type":"post","link":"https:\/\/rmolaw.com.au\/zh\/reverse-mortgages-the-risks-rules\/","title":{"rendered":"Reverse Mortgages: The Risks &#038; Rules"},"content":{"rendered":"<p>Reverse mortgages are known to be a \u201clast resort\u201d for retirees and pensioners.<\/p>\n<p>The main reason for this low usage of reverse mortgages is due to the risk of will disputes between beneficiaries and reduced equity later in life.<\/p>\n<h3>Considerations<\/h3>\n<p>There are two important factors to consider before entering into a reverse mortgage \u2013 no negative equity guarantee and protected equity option.<\/p>\n<ul>\n<li><span style=\"font-size: 115%;\">Negative equity guarantee: regardless of how long you stay in the home, this ensures you never owe more than the value of the home.<\/span><\/li>\n<li><span style=\"font-size: 115%;\">Protected equity option: this ensures the home owner will retain a portion of the home\u2019s future value upon its sale.<\/span><\/li>\n<\/ul>\n<p>Other considerations include:<\/p>\n<ul>\n<li><span style=\"font-size: 115%;\">compounding interest,<\/span><\/li>\n<li><span style=\"font-size: 115%;\">fee, and<\/span><\/li>\n<li><span style=\"font-size: 115%;\">interest rates.<\/span><\/li>\n<\/ul>\n<h3>How Much Can I Borrow?<\/h3>\n<p>The amount you may borrow is regulated by government in two forms:<\/p>\n<ul>\n<li><span style=\"font-size: 115%;\">You cannot go into \u201cnegative equity\u201d i.e. you cannot borrow more than the value of the home.<\/span><\/li>\n<li><span style=\"font-size: 115%;\">You can only borrow a set percentage value of the home.<\/span><\/li>\n<\/ul>\n<h3>The Key Point<\/h3>\n<p>You need to ensure you engage our experienced team to review any arrangements prior to signing the documentation.<\/p>\n<h3>\u8054\u7cfb\u6211\u4eec<\/h3>\n<p>Get the best representation. Contact Ryan Murdoch O&#8217;Regan Lawyers on <a href=\"tel:1800999529\">1800 999 529<\/a>, email\u00a0<a href=\"mailto:mail@rmold.newwebsite.live\">mail@rmold.newwebsite.live<\/a>\u00a0or submit an enquiry below.<\/p>\n<p>We are available to meet with you at any of our local offices (<a href=\"https:\/\/rmolaw.com.au\/zh\/contact-us\/\">Brisbane, Gold Coast, Beenleigh, Cleveland and Jimboomba<\/a>) or by telephone or video-conference.<\/p>\n<p><em>This article is for your information and interest only. It is not intended to be comprehensive, and it does not constitute and must not be relied on as legal advice. You must seek specific advice tailored to your circumstances.<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>Reverse mortgages are known to be a \u201clast resort\u201d for retirees and pensioners. The main reason for this low usage of reverse mortgages is due to the risk of will disputes between beneficiaries and reduced equity later in life.<\/p>","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1],"tags":[],"expertise":[345],"class_list":["post-26296","post","type-post","status-publish","format-standard","hentry","category-uncategorized","expertise-property-developmentmortgage-guarantee-advice"],"acf":[],"_links":{"self":[{"href":"https:\/\/rmolaw.com.au\/zh\/wp-json\/wp\/v2\/posts\/26296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rmolaw.com.au\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rmolaw.com.au\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rmolaw.com.au\/zh\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/rmolaw.com.au\/zh\/wp-json\/wp\/v2\/comments?post=26296"}],"version-history":[{"count":2,"href":"https:\/\/rmolaw.com.au\/zh\/wp-json\/wp\/v2\/posts\/26296\/revisions"}],"predecessor-version":[{"id":28235,"href":"https:\/\/rmolaw.com.au\/zh\/wp-json\/wp\/v2\/posts\/26296\/revisions\/28235"}],"wp:attachment":[{"href":"https:\/\/rmolaw.com.au\/zh\/wp-json\/wp\/v2\/media?parent=26296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rmolaw.com.au\/zh\/wp-json\/wp\/v2\/categories?post=26296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rmolaw.com.au\/zh\/wp-json\/wp\/v2\/tags?post=26296"},{"taxonomy":"expertise","embeddable":true,"href":"https:\/\/rmolaw.com.au\/zh\/wp-json\/wp\/v2\/expertise?post=26296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}