Are you over the age of 60 years, own your own home and wanting more freedom to live a more comfortable lifestyle in retirement?
Are you worried the savings you have is not enough to get you though your retirement?
Do you have a wish list that could include a new car, a holiday or simply make life easier?
Is your home in need of repairs, improvements, or renovations?
Do you require additional income to help pay medical bills, or simply supplement your pension to assist with covering living costs?
If you answer yes to any of the above then a Reverse Mortgage may be suitable for you.
What is a Reverse Mortgage?
A Reverse Mortgage is a loan which has been specifically designed for seniors 60 years and over.
It allows you to borrow money using the equity in your home. Your home is used as security allowing you to access the funds through a regular income stream, a bulk drawdown or a combination of both. You can only borrow up to certain amounts based on the age of the youngest borrower and the value of your home.
For example, if you are the age of 60, the most you can borrow is around 15% -20% of the value of your home. This amount can vary by 1% For each year over the age of 60.
Before applying for a Reverse Mortgage … you will need to answer a few questions:
- Can I sell the property and downsize?
- Can my children assist me with the extra money I need?
- What are my options?
Things you need to know and do :
- Over the life of your loan your debt will increase, and your equity will decrease
- The interest rate can be higher than a standard home loan
- Drawing the funds may affect your ability for the age Pension.
- Speak to your children about the reverse mortgage option prior to proceeding.
- Speak to your financial planner to find out if a Reverse Mortgage could:
- Affect your ability to afford aged care
- Eat into money you need for future medical bills or home maintenance.
- If you are the sole owner of your home, and someone lives with you, that person may not be able to stay when you move out or die.
- There is a no negative equity guarantee attached to the loan.
- If you are considering a Reverse mortgage, you will be required to discuss your needs, objectives and financial situation with an accredited Reverse Mortgage Professional to learn how a reverse mortgage may affect your personal circumstances.
- We encourage you get independent advice from a financial adviser or legal professional and if you receive government benefits speak to Australian Government services Australia
Things you should also know !
- Reverse Mortgages are a regulated consumer finance product in Australia
- An application for a Reverse Mortgage will need to comply with the terms and conditions of the Reverse Mortgage Lender, and loans are subject to loan approval criteria.
- Terms, Conditions, Fees, and charges apply. These will be advised at time of application
If you believe a reverse Mortgage may be suitable to you contact Rhonda Porter of Your Finance Choice on
Mobile: 0407 443 753 or email: firstname.lastname@example.org