Reverse Mortgage

A reverse mortgage is a home equity release solution that allows people over 60 years to borrow money using the equity in their home as security.

Elderly couple drinking

An alternative funding option
to boost your retirement income and live the life you've earned

No Risk of Default

No Interest Payment

No Risk of Compound Interest

Guarantee Cash / Income Distribution

Boost your retirement income with TED and live a more comfortable retirement

Reverse Mortgage Overview

A Reverse Mortgage is an alternative financing solution for homeowners aged 50 and over. It allows you to access a percentage of equity in your home to supplement your income without selling your home or limiting your lifestyle—the older the borrower, the higher their borrowing capacity.

A Reverse Mortgage can only be repaid in full when the last borrower permanently leaves the security asset (home) or transfer it to the Estate. Alternatively, if the borrower wishes to make early repayment and exit the contract, they can do so at no extra cost.

A Reverse Equity Mortgage is designed to help you cover personal expenses such as buying a car, making home improvements, paying a medical bill, or supplementing a pension payment.

What is The Term Equity Deposit (TED) Reverse Equity Release Loan?

The Term Equity Deposit Master Trust (TED) offers an equity release vehicle (ERV) for residential property owners to deposit their real estate property as security in exchange for a no-interest loan. The loan can be a securitising cash payment, a lump sum cash, or a line of credit against their house (the Secured Property (SP)).

TED is a product offered under B. Moses Securities PTY LTD. You can talk to your B. Moses Private Wealth Adviser, your Financial Adviser, or an HER mortgage specialist if you consider releasing a portion of your home equity to support your retirement lifestyle.

Our Perspective

The Benefits TED Offers to Clients

TED is a form of Reverse Mortgage that provides an opportunity to unlock the wealth in your real estate asset and provide additional financial support outside the Aged Pension and/or Superannuation to Australian pre-retirees and seniors to enhance their standard of living.

Irrespective of your TED Equity Release Plan, there is no risk of compounding interest. Principal repayment is limited to the Face Value of the Total Secured Debt paid to the Borrower/PEI and TED Entitlement which is a portion of the additional capital growth if and when realised. 

What is compounding interest? 

Compound interest means paying interest not only on the amount you have borrowed but also paying interest on the interest charged to the amount initially borrowed and for the duration of your loan term. 

Why is there no compounding interest with TED? 

TED aims to help consumers improve their lifestyles with the income generated from their respective TED plans. B. Moses Securities and its co-investors aim to build long-term partnerships with our consumers and their Estate.

TED is a structure designed to ensure our consumers, their Estate, and co-investors are all achieving our respective desired outcomes. Charging additional interest on the interest does not fit our code of conduct and our interest in building long-term sustainable wealth for all stakeholders, including our consumers or TED users.

TED is an option for people with no family support to help them financially or who prefer to securitise their home equity for additional income rather than receive family assistance without incurring enormous debt.

The additional income could offer a comfortable financial cushion as the Aged Pension alone, even when supplemented by other income, most often is identified as insufficient to enjoy life despite budgeting.

There is no interest repayment obligation to a borrower for as long as you retain ownership of the security asset or your home. TED generally is a credit product for people with limited or no ability to service traditional debt.

The target market for the TED products is people over 50, retirees, and Australian seniors with a debt-free home or a real estate asset with sufficient equity. Maximum LVR is 50 for all TED credit products. A borrower could use their home as a security for an income stream, a lump sum, a line of credit loan, or a combination. Generally, the borrower could live in their home or move into an Aged Care home and retain ownership of the security asset.

A trigger event for repayment of the loan amount is generally by selling the security asset or when there is a change of ownership or title. 

A tenancy protection provision addresses the rights of all persons other than the borrower to have a right to occupy the security property in an extraordinary event. Such an event is the death of the principal participant (Borrower). The nominated person(s) must be declared at the time of application.

Tenancy protection means the rights of any spouse, partner, or other residents living in the home are protected under a tenancy protection provision even if the principal borrower moves into aged care accommodation.

TED exercises its rights only when the asset is sold or transferred to an Estate, such as independent children.

What can you do with a reverse mortgage?

You can use your Reverse Equity Mortgage proceeds (income or lump sum cash) to improve your lifestyle

Day-To-Day Expenses

You can use a home equity release to help cover living expenses.

Pay Off Debt

Unlock home equity to consolidate or pay off existing debt, including credit card bills.

Aged / Home Care

You can maintain ownership of your house and utilise a reverse mortgage to help cover Aged care and home care cost.

Buy A Car

Purchase a new car, upgrade your current vehicle, or cover repairs to an existing automobile.

Travel & Holidays

A reverse mortgage can be used to fund holidays expenses or finance trips to see family and friends.

Home Improvements

You can use a reverse mortgage loan to make home improvements or repairs to your home.