Cash Poor? Asset Rich?

Over recent months, I have noticed an increase in mature and elderly people seeking to access this type of funding. There are 2 options available.

1. Seniors Reverse Mortgage

PLS 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 In Seniors Reverse Mortgage, borrowing is calculated as a percentage of the applicant’s age to the value of the property as security. The minimum age is 60 and funds can be a lump sum or monthly advances. The application will need to consider the borrower’s ability to meet Aged Care entry costs.

2. The Pension Loans Scheme (PLS)

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 owner-occupied property or an investment property which will be used as security. The ability exists to draw down an income stream of up to one and a half times the maximum Age pension plus supplements. No Lump sum payments are given out. However, in recent May 2021 Federal Budget, this aspect was being reviewed. Please refer to the Federal Government website for updates.

For further details on Reverse Mortgages for Seniors, or if you have questions about this option for members of For further details, do not hesitate to contact Paul if you fall into this category of finance.

 

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