https://www.heartlandfinance.com.au/.../interest-rate
1/ Our current Standard Reverse Mortgage interest rate is 5.60% p.a. (comparison rate 5.62 p.a.*)
2/ Our current Aged Care Option Reverse Mortgage interest rate is 5.60% p.a. (comparison rate 5.71% p.a.^)
I couldn't find the compounding period for a Heartland Reverse Mortgage. So let's say it is monthly. (Please correct me if I am wrong)
5.6% over a year is the same as 5.6%/12 = 0.4667% per month.
So over one year a 5.6% $100,000 Heartland loan will clock up an interest bill of:
$100,000 x (1.004667)^12 = $105,746 => one year interest component is $5,746
Proposed Australian Federal reverse mortgage rate is 4.5%, albeit compounding fortnightly
https://www.servicesaustralia.gov.au...ch-you-can-get
4.5% over one year is 4.5%/24 = 0.1875% per fortnight
$100,000 x (1.001875)^24 = $104,598 => one year interest component is $4,598
Maybe you would rather deal with a banker. But $1,000 per year is a pretty good cash incentive to go to that government office. And let's not forget there are a large cohort of oldies who would rather deal with an office than deal via a telephone.
SNOOPY