ASSET RICH CASH POOR REVERSE MORTGAGE

You have reached retirement time and your greatest asset is the family home. The investments you planned to use for retirement are not keeping up with the ever-increasing cost of living.

A reverse mortgage could be the solution to help you increase your standard of living. The popularity of these products is increasing in Australia and we are following the trend of Europe and America.

What is a reverse mortgage?

A reverse mortgage allows you to access the equity that you have in your home without moving out. There are no repayments, the interest becomes part of the loan, plus you retain full ownership of the property.

The mortgage is repaid when you sell or permanently vacate or pass away and some lenders have a ‘No negative equity Guarantee’ and that means you can never end up owing any more than the money generated from the sale of the house.

All money available after the sale of your property and the repayment of the loan naturally goes to you or your estate.

Some lenders will even allow you to use your investment properties as equity for these mortgages.

The funds from the reverse mortgage can be used for any worthwhile purpose; No repayments required and you do not need a regular income, therefore this is a great way to top up your pension or your self funded retirement scheme.

Everyone’s situation is different and this is generalised information and an independent assessment will be required for every individual.

Case Study
A couple aged 75 have a house valued over $500,000. That is their only asset.
They would like some money for a car and a holiday but can not save on for this on the pension.
They could borrow over $100,000. A reverse mortgage allows them to achieve these goals. With out losing the house.