A reverse mortgage allows older homeowners to unlock home equity and improve their standard of living.
It can be taken in many diverse ways – as cash, a line of credit, or an income stream or any combination of those.
Borrowers use these funds for many different reasons. Here are some of the most common uses for reverse mortgages.
Consolidate Debts
– Refinancing and paying out outstanding credit card debts, personal loans, or a traditional mortgage or home loan. –
Our clients often use a reverse mortgage to deal with outstanding accounts like council rates or covering ever-increasing strata title payments.
Consolidating debts and refinancing or paying them out, means you can then cover larger expenses, free up your monthly cash flow and return to enjoying your lifestyle with financial peace of mind.
Home Renovations and Maintenance
With a reverse mortgage loan, you can unlock your home equity for the money required to pay for important repairs and improvements. These might include repairs such as flooring and electrical work are providing greater safety, as can accessibility upgrades (e.g., ramps, walk-in showers)
Any renovations could be a good investment, as upgrading your home can increase its capital value.
All of this means that retirees can then stay in their homes longer.
Supplement Income
An income supplement can boost standard Age Pensions or superannuation to cover day-to-day living, rising essential costs, utilities, strata fees, or unexpected expenses.
A weekly, daily, or monthly ‘instalment plan’ is ideal (instead of a lump-sum loan). You will save a substantial amount because you will only be charged interest as you receive the money each month
Lifestyle and Travel
Funding holidays, dream trips; purchasing a caravan
You can unlock your home equity to fund your trips – time away, travel, or visits to family and friends. A reverse mortgage can also help you update your car over time.
When travelling is finished, the caravan or motorhome can be sold, and the proceeds can be used to pay off the reverse mortgage.
Aged Care and Medical Expenses
Paying for in-home care, unexpected medical bills, or accommodation.
Instead of selling your home, unlock your home equity through an aged care loan to finance your Aged Care costs.
You can apply for an Aged Care loan to pay for your Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP).
We also help you explore your options for aged care and provide useful information around other aged care costs that may apply, such as the Daily Means-Tested Fee.
Gift and Help Family
You may want to ensure that you leave an inheritance to your children and their children, or perhaps you want to help them out financially now – education expenses, a deposit for a home loan, any number of possibilities!
You can use some of the reverse mortgage to pay off your existing mortgage, and you can spend the remaining money as you wish. That puts more money in your pocket and helps to ensure that you don’t have to rely on your children financially during your retirement.
Why Choose Us
Over 20 years of experience
helping senior Australians
with finance
We are zero cost
to clients as we are
paid by lenders
You don’t get charged
extra by lenders because
you work with us
We know all the
seniors finance products
so clients will get the best product
available for their needs
We try and visit clients
at their homes as often
as possible
We help you
navigate pension rules
to ensure you know if your plan
will impact your pension
Finance-related
degrees held by staff
Reverse Mortgages Australia
Your Trusted source of Reverse Mortgage Advice, Delivery and support
From the first consultation with us, you can expect experienced, empathetic, specialist advice and a solution tailored to finance your retirement living and personal objectives.
We will ensure any reverse mortgage is sourced from trusted reverse mortgage lenders in Australia and meets your unique goals and your situation every time.
