Jodie HumphriesJodie HumphriesMar 31, 2021(1 min read)

A Citibank reverse mortgage is an equity release product where you can borrow against your home to help fund things like retirement. Citibank lends you a certain amount based on the value of your home. As you grow older, you can borrow a higher amount against the home’s equity. 

You’ll retain ownership of your home when you apply for a reverse mortgage. Interest will be added to the loan amount and is often higher than standard interest rates. However, you won’t have to make any repayments whilst you live in the property.

Government regulations offer protection against negative equity, so the loan amount can’t exceed the property value. If you move out, sell your home or pass away, the entire loan amount will have to be repaid, along with the accumulated interest.

Related FAQ's

How does a reverse mortgage from Suncorp Bank work?

A Suncorp reverse mortgage allows you to borrow against your home’s equity without having to make repayments as long as you live in the property. With a Suncorp reverse mortgage, you can withdraw the funds as a lump sum, line of credit, regular income or any combination of these. 

Although you won’t have to make repayments whilst living in the property, the reverse mortgage will attract interest. The interest is calculated on the loan amount and is added over a period, which means you’ll owe more when you have to repay the borrowed amount. The exact amount depends on the outstanding balance, rate of interest, value at the time of sale, and how long you have the loan.

Generally speaking, a Suncorp reverse mortgage must be repaid when you die or move out of the property. These loans are often used when people move from their homes into a retirement home or similar. It helps them financially make the move whilst allowing them time to sell their home. If someone lives with you, they’ll have to vacate the property when you die. 

You should be aware that a reverse mortgage will decrease your home’s equity that could be left to your will’s beneficiaries, like your children. The loan may also affect your Government entitlements and pension.

How does a Citibank reverse mortgage work?

A Citibank reverse mortgage is an equity release product where you can borrow against your home to help fund things like retirement. Citibank lends you a certain amount based on the value of your home. As you grow older, you can borrow a higher amount against the home’s equity. 

You’ll retain ownership of your home when you apply for a reverse mortgage. Interest will be added to the loan amount and is often higher than standard interest rates. However, you won’t have to make any repayments whilst you live in the property.

Government regulations offer protection against negative equity, so the loan amount can’t exceed the property value. If you move out, sell your home or pass away, the entire loan amount will have to be repaid, along with the accumulated interest.

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