Property Prices Boom - The Effect on Reverse Mortgages

The value of properties have boomed in the last year or so.  This can provide an opportunity for retirees to access more funds from their home loan.

Reverse Mortgages are restricted by a percentage of the value of the home (depending upon your age).  Property values are continuing to increase, which may allow clients to access more funds from their home to help them pay for expenses.

Here are some reasons a person may consider a Reverse Mortgage  – to pay ongoing bills due to insufficient income, renovations, car purchase, holidays, or medical procedures.  Many of our clients receive the Age Pension but have paid their home loan down, so while they may be income poor, they are asset rich.

Your situation will be carefully considered to ensure any loan is for your benefit.

Home Loans at Retirement

So you are considering retiring but have a home loan?  Some clients are better to stay with their existing lenders with lower interest rates. Other people may need more flexibility with their home loan for future expenses.  This may be a question more about Loan Products, than feeling compelled to switch your loan over to a Reverse Mortgage.  

Please all 0403 211 361 to discuss your options