Funding Retirement Lifestyle

There is no doubt that Australians are now living longer. As a result thousands of retirees are finding that their savings aren’t enough to fund their lifestyle in retirement. There is clearly a need to consider how we fund these extra years without diminishing our quality of life.

In Australia, property has traditionally been considered a primary source of wealth accumulation but, until recently, not necessarily as a financial asset that can be utilized to help fund retirement. Now, using a reverse mortgage loan you can free up the equity in your home and use it to fund and enjoy your retirement.

A reverse mortgage, sometimes referred to as an equity release loan, lets you borrow cash against the equity in your property. People aged 60 or over use it to pay out their existing home loan or settle other debts, to fund expensive medical bills; for renovations; a new car; or even a holiday.

Whilst product features will vary between providers the stronger reverse mortgage providers will allow you to borrow from as little as $10,000 up to 50% of the value of your property and will require no repayment until the home is vacated. The amount you can borrow will depend upon the age of the youngest borrower and the value of your property. Additionally, look for a product where there are a number of flexible options to suit your individual needs including flexibility with the amount you borrow, and a choice of fixed or variable interest rates. For peace of mind make sure your reverse mortgage has a No Negative Equity Guarantee – never owe more than your home is worth, and a Protected Equity option.

Whilst a reverse mortgage allows you to stay in the home you love and enjoy more financial freedom in retirement there are also many important features that you should be aware of. That’s why you should obtain independent legal and financial advice before taking out a reverse mortgage loan.

For more information, go to www.marinerfunds.com.au

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