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In Australia more than 2 million people over the age of 60 reply on Social Security, more than 200,000 Australians will turn 60 each year between now and 2031.
A vast majority of these seniors have not provided for enough money through savings or superannuation during their working like to provide them with a comfortable retirement plan for a variety of reasons.
For many Australian’s they did not have a compulsory superannuation plan in place during their working life , unlike today when in 1992 compulsory super was launched.
People were not encouraged to save or visit a financial planner for retirement planning. Now that they have reached retirement age it is too late for many .
What they did have was the “Great Australian Dream” of owning their own home and it is this that they now have to turn to obtain a comfortable life style in retirement.
More than half of retirees over 65 live on a household income of less than $30,000, while more than 29 per cent of retirees do not have any second income but only the age pension. So it is to their main asset, their home, that they are now turning to provide them with a reasonable lifestyle.
There are several ways that seniors can access the equity or asset value they have built up in their home depending on their age and current situations via Reverse Mortgages; Seniors Home Equity Release Loan and Asset loans.
Reverse Mortgage or Equity Release Loans –
These are designed for people who own a home and are over sixy (60) years of age.
They can access the equity in their home according to the age of the youngest borrower and the value of the home, no repayments are required on the life of the loan and the Title of the home stays in the borrowers name lifetimeloan@seniorsfinanceaustralia.com.au or, to download an application form click here
Asset Loan –
Today we have many seniors 55 years and over who are still active in the work force,
some may have one partner on a pension and the other partner working part-time. This could be as a – book keeper, child carer, network marketing, sales, garden maintenance, consulting profession, contract work, skilled trade areas.
It may be that that youngest party is not yet old enough for a reverse mortgage - they may not be able to borrow the amount they require and in some cases older people are still very active in business and require funding for all types of reasons.
Asset loans do not require any financials or list of assets or liabilities but the borrower must make a self declaration that they can afford the loan. The Title of the home stays in the Borrowers name. Some of these types of asset loans can also have the interest capitalized into the loan, depending on each circumstance.
If you believe that this is the type of loan that may suit your circumstances and to see if you qualify please check here for details assetloan@seniorsfinanceaustralia,.com.au
Joint ventures with financial institutions –
Some financial institutions offer various plans to purchase percentages of homes with the borrower having the right to live in them for life. These plans vary and it would be very wise to have your lawyer look into this type of arrangement as the Title of the home may move from your control.
It is important for consumers to understand that some of these products are not loans against your property , but agreements to sell some of , or part of, or your entire home – either now or in the future.
They are not a true “reverse mortgage” – with a Reverse Mortgage the Title of the home will stay in your name, you retain full ownership of the property which means that you also receive any future capital growth on the property.
Accommodation Bonds –
Accomoodation Bonds allow an elderly person to access the equity in their home for a Bond when they may have to go into a Low or High Care Facilities for the aged.
The decision to move from the family home into an aged-care or nursing home is very stressful and in most cases needs to be done fairly quickly. By using an accommodation bond it means that the family home can be kept and the equity or asset in the home can be used to fund this move, this then allows the the family to take care of the home, rent the home out until the elderly owner is ready to make the decision to sell the home.
It retains the option to move back home should the facility not be to a person liking.
It allows more time to make the decision to sell
It allows the option of leaving the home to their heirs
Tel: 1300 881 807
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