Sounds like another level of complexity, but if you can get it its a very cheap cost of borrowing!! -----------------------------------------------------
There is also a little known but cheaper alternative to a reverse mortgage.
Called the Pension Loans Scheme, it is restricted to those drawing a part age pension who own real estate.
The money can only be taken as an income stream, and the maximum borrowable amount is that which takes applicants to the maximum age pension.
However, the interest rate is only 5.25 per cent a year.
Self-funded retirees who own property can access the scheme, but must be ineligible for the age pension under either the income test or the assets test.
If they are ineligible for the age pension under both tests, they cannot access the scheme.
