Seniors Loans & Reverse mortgages | Geelong, Surf Coast & Bellarine
If you are looking to borrow money in retirement, a reverse mortgage may allow you to use the existing equity in your home to act as security for a new loan, rather than relying on a regular income stream.
What is a reverse mortgage?
Many people are unsure about what a reverse mortgage loan is. It’s a type of loan that lets you access the equity that you have built up in your home without having to sell the property.
Most reverse mortgages give you a choice about how you receive the funds: As a lump sum payment, a regular series of payments, or a combination of both. That can make a reverse mortgage loan a valuable source of extra cash in retirement. And the big plus of a reverse mortgage is that no repayments are necessary until your home is sold.
Deciding if a reverse mortgage is right for you!
How will the loan affect my financial future? The younger you are when you take a reverse mortgage, and the more you borrow, the less equity you will have in the future. It’s important to consider how your needs may change in the next 10, 20 or 30 years. Using too much of your equity too soon may impact your ability to afford future costs such as medical expenses or the need to move into aged care accommodation.
Are there any other alternatives?
There may be more appropriate alternatives suited to your needs. These include downsizing, making arrangements with family members, accessing government benefits, loans, using savings, selling other assets or home reversion schemes.
Want to know more? Contact Michael Cullinan on 0447 528 116 to discuss your personal requirements.
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