Because Gwenda is horrified at the rate at which the debt on her reverse mortgage is accruing, she is wondering if she can claim some kind of rental assistance.
Q. Gwenda
I have a reverse mortgage on my home, which is growing exponentially, and I currently receive the full Age Pension.
Is there any way I can claim ‘rental’ assistance as I’m basically renting here, seeing as I’m accruing a debt from staying in my home?
A.
You can only receive rent assistance if you actually pay rent. As you own the property, the value of which is excluded from your assets, you cannot claim rent assistance.
This is the same as anyone who pays a conventional mortgage on their property, while you may be accruing a debt, the value of your home will most likely be appreciating. However, if you are concerned about the rate at which your debt is growing, you should seek advice from an independent financial advisor.
