We have a retirement income gap . . .
We are living longer than ever before. Unfortunately, not everyone has enough savings to fund their retirement and many Australians are unable to enjoy the retirement they deserve, but downsizing or relying on credit cards are the not only options available.
What is a reverse mortgage?
A reverse mortgage is like a regular home loan that has been deigned to meet the needs of seniors. It could allow you to access the equity in your home to fund a more comfortable retirement, while continuing to own and live in your own home.
The benefits of a reverse mortgage . . .
"I was totally unaware of the options available to access our own equity . . . good knowing full costs, now and in the future" - K. Jones
"Not as complicated as I thought . . . comfort assured by referring to the ASIC/Money Smart calculators" - G. Maher
Some important considerations . . .
Could a reverse mortgage affect my pension?
You can usually access some of the equity in your home without impacting government entitlements. However, you should contact Centrelink to discuss your particular financial situation.
What costs are involved?
Loan interest is compounding, which means the loan balance increases over time as interest is added to the loan. There are fees and charges for setting it up, including for your independent legal advice.
When is the loan payable?
At the end of the term of your loan (when you move permanently from your home) the total loan will then be payable. This is usually from the sale of the property, passing away, or moving to aged care.
For more information, give Ian a call on 03 9335 5565.
General Advice Disclaimer
The information in this article is of a general nature and does not take into account your own financial objectives, circumstances or needs.
You should consider your own personal situation and requirements before making a decision.
If you have concerns or questions, please contact us.