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Are you over 60?
Is your retirement income no longer meeting your living expenses … Are you considering selling your home to increase your retirement income … Would you like another option?
We may be able to help!
With the ageing population in Australia, Governments are placing more responsibility on individuals to fund their own retirement. Many people, especially the “baby boomers” generation who didn’t start contributing to superannuation until fairly late in their life, find that their super and other income sources such as the old age pension, don’t provide enough money to support the lifestyle they’re accustomed to.
Rather than selling your home to fund your retirement, a reverse mortgage may provide the answer. You don’t need to earn any income to be eligible and there are no monthly repayments to make. How much you can borrow depends only on your age and the value of your property. In fact, the older you are the more you can likely borrow.
A reverse mortgage is available to residential property owners over 60. It allows you to release funds using the equity in your home. You can use these funds as an income stream or for personal lifestyle needs like travel, home improvements etc.
Like a traditional mortgage there’s interest to pay, but you don’t have to make the monthly repayments. The interest is capitalised, which means it’s added to the amount of the loan while you live in your home and you can live there for as long as you choose. When your home is eventually sold you or your estate will pay back the loan (i.e. the cash you received) plus the interest owing.
There are a range of reverse mortgage options available. Which one is the most appropriate for you depends on your individual circumstances and other factors. This is where the knowledge and experience of your Citiwide loan specialist can be invaluable. He or she will look at your overall situation and work with you to explain all your options and the advantages and risks associated with each.
For more information please call 1300 732 630. You can also contact us using our online enquiry form.