Reverse Mortgages: How They Can Help You Live A More Comfortable Retirement.
Remember the old saying “your home is your biggest asset”? As property prices rise, a lot of older Australians are looking to unlock some of the equity in their biggest asset to make their retirement more comfortable.
By far the easiest way to do this while keeping your home and continuing to live in it is with a reverse mortgage. It allows people who are over 60 to borrow against the equity in either their home (or a rental property) and not make any repayments until they move out permanently such as when they sell, move into long term care or pass away.
The money can be made available in different ways such as an initial advance, regular monthly, quarterly or annual payments for up to 10 years or as a cash reserve for unexpected future expenses such major repairs or health care etc.
Commonly we see reverse mortgages being taken out for a combination of these reasons:
Debt consolidation: which frees up your budget to spend on what you want
Day-to-day expenses: supplement your other sources of income
Home improvements: get those home improvement projects you want and need done now
Support your family: Give other family members the leg up that they need
Travel and Holidays: anything from going to see the grandkids to ticking destinations off your bucket list
Cars: get the car you always wanted or even just maintaining your current vehicle
Aged care: pay for residential aged care and home care costs
Medical and healthcare: cover expected and unexpected healthcare costs so you don’t suffer unnecessarily.
How much you can borrow is determined by your age – the older you are the more you can borrow and the price of your home. Money Smart has a reverse mortgage calculator which might help you make some initial calculations about your situation.
For more information on the ins and outs of reverse mortgages and to see if they are right for you call 1300 661 211 or fill in the form below and we’ll organise a no-cost, no-obligation consultation. Before you can settle a reverse mortgage it is a requirement that you seek independent legal advice and it’s recommended that you speak to a financial advisor and your family as part of the process so that you