Reverse Mortgage - the key to a comfortable retirement; turning your home into cash, without selling.
If you are retired and your ‘super’ or the pension just aren’t enough, a Reverse Mortgage may be the solution. A Reverse Mortgage allows you to free up the equity in your home without selling or having to make regular loan repayments.
With Australians living longer and facing an ever increasing cost of living, many find that although they are asset rich, they simply don’t have the cash to enjoy retirement. Recent Westpac/ASFA research reveals that the cost of a comfortable retirement is $833 a week, per couple. Unfortunately, couples over 65 have an average weekly income of only $321. While the value of their homes is increasing, their lifestyle is decreasing.
Almost 80% of retirees rely on the pension as their primary income. Reserve Bank figures predict that only 35% of us will have any super left by the time we are 75. And with Australia’s aging population, there is little hope of increased support from the government. Until now, the only option for retirees was to sell the home they have spent a lifetime working for, just to make ends meet. Even then, with the associated costs of finding a new home, many retirees find the exercise makes little real difference; particularly if they end up spending a significant sum on renovating a new house to suit their needs. But there is now another option – the Reverse Mortgage. Exclusively for retirees, it allows you to borrow against the value of your house, without having to make any regular repayments. Instead, the loan is repaid out of your estate, or when you sell the house. Typically, you can access between 10% and 45% of the value of your home for whatever purpose you like; a holiday, new car, gifts for the grandkids, renovations or just to enjoy the standard of living you deserve. You can take the money as a lump sum, a regular monthly income, or as a line of credit; taking only what you need, as you need it. Let’s say you own a home worth $200,000; a Reverse Mortgage could mean a $90,000 bonus to your lifestyle, without leaving your home. This could mean the difference between the retirement you have dreamed of and the struggle many are facing. It is important to consider that this is a mortgage, with interest accruing like any other loan. At the same time, however, the value of your home is increasing and with houses in Australia doubling in value every 10 years, a Reverse Mortgage may be the key to a long, enjoyable retirement, in your own home. Join the homeloanclub newsletter
