Inviva loans are a type of equity release loan called a reverse mortgage.  Under Australia’s responsible lending laws, reverse mortgages are subject to certain age-based maximum loan-to-value ratios (LVRs).

The reason for this is that unlike a regular ‘forward’ mortgage, with a reverse mortgage the borrower isn’t required to make any repayments until the end of the loan.  Consequently, the loan balance can increase over time as interest capitalises.  

The LVR limits are an important consumer protection designed to reduce erosion of the borrower’s home equity.  By law, you also get the protection of a ‘no negative equity’ guarantee.