Over the past year I have noticed more matured and elderly people are seeking to access this type of funding. There are 2 options available
1. The Pension Loans Scheme (PLS)
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 an owner- occupied or investment property which will be used as security. The ability to draw down an income stream up to one-and a-half times the maximum Age pension plus supplements. No Lump sum payments are given out. However, in the May 2021 Federal Budget, this aspect is being reviewed. Please refer to the Federal Government website for updates.
2. Seniors Reverse Mortgage
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 here is 60, and funds can be in a lump sum or monthly advances. Borrowers are also assessed for their ability to meet Aged Care entry costs.
For further details on Reverse Mortgages for Seniors, or if you have questions about this option for members of your family, please contact Paul today.