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What is reverse mortgage?

In Australia, a reverse mortgage is a loan for homeowners aged 60 and up that allows them to convert a portion of their home equity into cash or as collateral for the loan while continuing to live in their home. The loan is not required to be repaid until the borrower moves out or dies. The loan amount and interest owed grow over time and are repaid when the borrower moves out of the house.

It's important for borrowers to carefully consider the costs and potential impacts of a reverse mortgage, as well as their long-term financial goals, before deciding to pursue this type of loan.