Many assume that by the time you hit retirement, you will have enough savings to fund the lifestyle you have always desired.
However, with the rise in living costs and the aging population, for many Australians this is unfortunately not the case.
Tightening the belt is an option, but with the costs of living, there is only so far the pension can stretch.
To alleviate this financial stress, you may consider taking out a personal loan, or even getting (another!) credit card.
However, either on application they cannot be obtained, or you quickly realise that you are unable to afford the monthly repayments.
Another option is downsizing – to a smaller home or renting – but you dislike the thought of moving and leaving the family memories you have made in your home and your local community.
Luckily, there are other options out there, like a reverse mortgage.
What is a reverse mortgage?
A reverse mortgage is like a regular home loan, designed specifically for the needs of seniors. It allows those aged over 60, to release the equity in their home to fund a more comfortable retirement, without having to sell.
You can use a reverse mortgage for many purposes such as debt consolidation, living expenses, home improvements, travel, medical costs, aged care or purchasing a new car.
The range of flexible drawdown options also means you can tailor the loan to suit your needs. You can choose to receive your reverse mortgage loan amount as a lump sum, regular advances of up to 10 years in term, a cash reserve facility (like a ‘line of credit’), or a combination of all three.
Adding to the flexibility of a reverse mortgage, making regular loan repayments is not necessary however, you are free to do so at any time.
A Reverse Mortgage only becomes repayable when you sell your property, move into long-term care, or pass away, with the interest adding to the loan each month until you leave your home.
The amount you can borrow depends on several factors such as your age and the value of your home (calculate how much you could access here).
A reverse mortgage also allows you to live in your home for as long as you wish, so you could benefit from any potential increase in property values. Importantly, you will always retain ownership of your home.
If you would like to find out more about reverse mortgages, you can contact the leading reverse mortgage provider in Australia, Heartland Seniors Finance, who have assisted over 20,000 Australian seniors release over $1bn of equity from their homes to live a more comfortable retirement with a reverse mortgage.
You can also request your free no-obligation Reverse Mortgage Guide here:
Heartland Seniors Finance
Website: www.seniorsfinance.com.au
Phone: 1300 889 338
Email: enquiries@seniorsfinance.com.au
Please note the information set in this article may change from time to time. Every situation is different – this information has been prepared without taking into account your needs, objectives, or financial situation. If you are considering a reverse mortgage, we encourage you to understand how it may affect your personal circumstances – talk to friends and family, speak to professionals, and use the resources and tools Heartland has available. Subject to complying with the terms and conditions of your loan, you will not owe more than the net sale proceeds of your home and you can keep your home for as long as you choose. There is no assurance that property values will increase over time, and property values may also decline. Applications are subject to loan approval criteria. Terms, conditions, fees and charges apply. Credit provided by ASF Custodians Pty Ltd (ACN 106 822 780 / Australian Credit Licence No. 386781).
