(03) 9796 6760
0428 310 165
(03) 9705 8094
9 Golden Leaf Avenue
Narren Warren South, VIC 3805
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Seniors Finance Options
Seniors Equity Release Products are designed for individuals and couples over 63 years of age, either retired or still working. They are for people who have equity in property, normally their own home (this could be a holiday home or investment property), yet find they have little cash income or may still be trying to service existing debt.
Reverse mortgages are the most popular products offered by a small number of lenders. These operate like a normal mortgage where the lender takes security (mortgage) over your property. You then borrow against the value of your property by taking a lump sum, a series of draw downs or even have a cash reserve available or a combination.
What you use these funds for is up to you. Most common use is renovations or improvement, holidays or supplementing other income streams. The funds could be used for other investment purposes or even helping children or grandchildren, giving with a warm heart rather than after death.
The major difference to a normal mortgage is that the principal and accumulated interest does not need to be repaid until you die, sell the house or move out permanently. It can be repaid earlier if circumstances or needs change.
Other products are becoming available to the seniors market, some are a type of a Home Reversion Scheme, others are based on a Shared Appreciation Mortgage model. Each has their own strength and weaknesses. Which one suits your needs is a question that by going to one lender will not answer for you. They will sell you their product, irrespective of whether it best suits your needs.
This is a specialist area where an understanding is needed of social security, estate planning and retirement income. Reid Consultants are accredited with all the major lenders in this specialty market and understands the issues involved. We are accredited with SEQUAL as a Reverse Mortgage Consultant.
We have written a series of newsletters specifically discussing these products in more depth, please take some time to read the newsletters, accessed by the Tab above, which may apply to you.