Over the past year, I have noticed more matured and elderly people seeking to access this type of funding. I have assisted many older Australians in obtaining access to the untapped equity in their home as many are seeking to retain their current living standards while remaining in their family home.
Many do not have sufficient funds in their super for ongoing living costs during retirement. Most see it as something they want to leave to their children in their will and if necessary, use it to fund their Aged Care.
There are 2 options available.
- Home Equity Access Scheme
This is a Federal Government scheme for anyone who has reached pension age to take out a “reverse mortgage” from the government, where the balance of the loan is repaid when the property is sold. The property can be either their owner-occupied property, or investment property which will be used as security.
• Interest is compounded each fortnight on the loan balance.
• You or your partner are of Age Pension age or older.
• The ability to draw down an income stream is up to one and a half times the maximum Aged Pension plus supplements. An initial lump sum payment is applicable and this depends on your circumstances. Please refer to the Federal Government website – www.servicesaustralia.gov.au - Seniors Reverse Mortgage.
• Borrowing is calculated as a percentage of the applicant’s age to the value of the property as security.
• Minimum age is 60.
• Borrowing capacity is dependent on age and ability to increase annually on birthday.
• Funds can be a lump sum and with monthly advances.
• Ability to meet Aged Care entry costs.
• No need to be in receipt of pension incomes.
Contact Paul on 0417 567 747 if you are contemplating a Seniors Reverse Mortgage Finance.
Tags: aged care, equity release, reverse mortgage