Our Retirees Access Home Loan is a variable rate reverse mortgage, a type of loan that allows Australians in their retirement years access to the equity in their homes or investment properties for their living expenses and other worthwhile purposes.

Despite the growing popularity of reverse mortgages, there are still many misconceptions around how the loan works. To help you better understand what a reverse mortgage is and isn’t, we’re debunking five of the most common reverse mortgage myths.


Myth one: You no longer own your home

No longer owning your home is the most common myth regarding reverse mortgages. With our Retirees Access Home Loan, you will retain ownership of your home or investment property. You simply grant us a mortgage over the property.


Myth two: You are required to make regular repayments

With our Retirees Access Home Loan, the money is paid as a lump sum and you are not required to make regular repayments. However, you are free to make voluntary repayments or repay the loan via lump sum at any time and at no extra cost or penalty. Or, the balance of the loan will be repaid by your estate or when the property is vacated or sold.


Myth three: You could end up owing more than the home is worth

Under the “no negative equity guarantee”, lenders must guarantee that when your reverse mortgage contract ends, you will not have to pay back more than the value of your home. Read more about the no negative equity guarantee on the Australian Securities and Investments Commission’s (ASIC) MoneySmart website.


Myth four: You will leave debt to your children

Your Retirees Access Home Loan will be paid by your estate, meaning there is no residual debt. You can still leave your property to your children in your estate. However, you will only be leaving the remaining equity in the home. We recommend that you discuss your intentions with your family and also investigate how the Retirees Access Home Loan may impact any Government support payments, entitlements or other benefits that you receive.


Myth five: You can only use a reverse mortgage for certain expenses

One of the benefits of our Retirees Access Home Loan is its flexibility. Funds are released as a lump sum and may be used for any suitable purpose, including everyday living expenses or things such as home renovations, an overseas holiday or a new car. You may also wish to use the loan to consolidate any existing debts. Our Retirees Access Home Loan cannot be used for business purposes or to fund the purchase of a property in a retirement village.



We're ready to help you

Over the years, G&C Mutual Bank has helped many members enjoy their retirement in their own homes with our Retirees Access Home Loan. Contact us to find out more or arrange a visit with one of our Mobile Lenders.


To find out more about reverse mortgages, including a reverse mortgage calculator to help you work out how much equity you may have in the future, visit the ASIC’s MoneySmart website.