Reverse mortgages a good option

Far from exploiting the elderly, reverse and shared equity mortgages are providing a boon for some property investors. A reverse mortgage is a tax-free, pension-test free payout that doesn't have to be paid back until the home is sold or the owner moves into aged care. However reverse mortgages can be expensive as the interest rates, typically 1 per cent higher than on a normal home loan, are capitalised so that the cost compounds over time.