Over the past year, more and more senior and elderly people are seeking to access this type of funding. Flakus & Associates has assisted many senior Australians to obtain access to the untapped equity in their home as many are seeking to retain their normal living standards and remain in their family home.
Many seniors do not have sufficient funds in their super for ongoing living costs during retirement. Most see their funds as something they want to leave to their children in their will, and if they must, 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 an owner-occupied property, or an investment property, which will be used as security. Interest is compounded each fortnight on the loan’s balance. You or your partner who are of pension age or older Has the ability to draw down an income stream of up to one and a half times the maximum Age 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 for more information. - Seniors Reverse Mortgage
Here, borrowing is calculated as a percentage of the applicant’s age to the value of the property, which is used as security. Minimum age is 60 years old. Borrowing capacity is dependent on age, and there is the ability to increase annually on the senior’s birthday. Funds can be a lump sum, with monthly advances. You must be able to meet Aged Care entry costs. You do not to be receiving pension to qualify.
For further details on either or both of these options, do not hesitate to contact Paul today.