Reverse mortgage to fund a retirement village lifestyle

The over 60s will be able to fund a move into a retirement village or cover the cost of aged care with a reverse mortgage. ABN Ambro has launched two reverse mortgage products, to be sold by financial planners, designed for seniors to be able to access more than the standard loan to value ratio (LVR). Of particular interest to the village manager is the Investment Property Mortgage (IMP), where clients can borrow an unlimited amount – from a minimum of $10,000 – against the value of an investment property to buy into a village. It allows retirees the flexibility to transition into a retirement village lifestyle while maintaining a revenue stream from their investment – the best of both worlds.