Aged & Retirement Living

For many Australians, the family home represents decades of hard work and is their largest asset. However, as living costs rise and superannuation balances decline, more retirees are looking for ways to access this wealth without selling their home.

A reverse mortgage can provide a solution, allowing homeowners to unlock some of the equity in their property while continuing to live there.

How it works

A reverse mortgage allows homeowners to borrow against the equity in their home. Funds can be accessed as a lump sum, regular non-taxable monthly payments or a combination of both.

The money may be used to meet everyday living expenses, such as groceries, or to fund home modifications that allow people to remain at home for longer. These could include a new bathroom, a lift, access ramps or other mobility improvements.

Reverse mortgages can also help fund a Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP) when a person moves into residential aged care.

Another growing concern is the number of Australians entering their 60s and retirement years with an outstanding home loan. Accessing home equity may provide a way to manage or repay this debt.

Regular loan repayments are generally not required. Instead, the loan and accumulated interest are usually repaid when the property is sold most commonly after the last remaining homeowner passes away or moves into aged care. However, the home may not always need to be sold to repay the loan. Ask Carol about the available options.

Home equity can also be used to pay for personal support services, including cleaning, showering assistance, medication support, transport to appointments and gardening.

As Support at Home funding can take time to access, releasing equity may allow essential services to begin sooner.

Self-funded retirees may also be able to reduce the strain on their savings by using equity release to meet some of their ongoing expenses.

Important protections

By law, reverse mortgages in Australia include a No Negative Equity Guarantee. This means borrowers or their estate cannot owe more than the property is worth, even if its market value falls.

Homeowners continue to benefit from any increase in the property’s value. They are also provided with MoneySmart projections showing the potential impact of the loan over five, 10 and 15 years, helping them make a more informed decision.

As a mortgage broker, Carol is required to act in her clients’ best interests and works to find an appropriate outcome for each person’s circumstances.

Deal directly with an experienced professional

Carol Russell – Your Finance Lady – is an authorised finance broker and Justice of the Peace. She operates under My Local Broker’s Australian Credit Licence 481374 and is Credit Representative 379114.

With 20 years’ experience as a finance broker, preceded by many years as a senior financial adviser in the banking sector, Carol specialises in helping older Australians remain in the homes they love while accessing funds for a more comfortable retirement.

Carol Russell – Your Finance Lady

Phone: 0418 431 157

Email: carol@yourfinancelady.com.au

Website: www.yourfinancelady.com.au