Bluestone offers retiree equity loan

Non-conforming lender Bluestone has launched a “reverse mortgage”, aimed at borrowers over 60 who own their own homes but have little cash to live on. Equitytap will offer loans against 11 to 45 per cent of a property's value up to $500,000, depending on the age of the borrower. A fixed interest rate applies for the life of the loan. At 8.95 per cent, however, the rate is higher than similar products in the market which currently range from 7.5 to 8 per cent variable. No regular payments are required with interest and fees capitalised to the balance of the loan until it's repaid. Repayment is made when the property is sold or from the borrower's estate upon death. The borrower retains all the rights and benefits of home ownership, said Bluestone CEO Alistair Jeffery.