Your house is your castle; avoid any form of debt; providing personal guarantees; directors guarantees at all costs including reverse mortgages
ME Bank has thrown its weight behind a new reverse mortgage lender, providing $100 million of funding and taking an equity position in Household Capital.
The company is chaired by former Minister for Superannuation and Corporate Law Nick Sherry. The chief executive is Josh Funder, who appears to have no financial services background, but has worked with the Clinton Foundation.
Household Capital is the second lender this year to announce plans to fill the gap in the reverse mortgage market left by the exit of the big banks.
It is offering a reverse mortgage, with loan size ranging from $50,000 and $550,000. The initial variable interest rate is 5.9 per cent.