As Australians enter their senior years, achieving financial security becomes increasingly critical. Unfortunately, even well-laid plans can falter, leaving many retirees facing stress and anxiety about their financial futures, especially as living costs continue to rise.
At AXTON Finance, we often encounter adult children concerned about their parents’ financial well-being. They turn to us for professional mortgage brokering advice to explore options for assisting their parents, including ways to unlock equity from their homes.
While some adult children are in a position to provide financial support, this isn’t always a viable long-term solution. It can also lead to uncomfortable feelings of dependency for parents, potentially exacerbating their stress.
A growing number of seniors and retirees are now considering a Reverse Mortgage as a viable solution. This straightforward financial tool can, subject to eligibility, provide a lump sum to release home equity as cash, settle existing debts, or fund home improvements. This enables seniors to comfortably remain in their own homes longer. Importantly, a Reverse Mortgage does not require income assessment and offers options for periodic monthly payments to supplement the retiree’s income.
There are no mandatory repayments with a Reverse Mortgage until the home is sold, and voluntary repayments can be made at any time, whether in regular installments or as a lump sum.
Like any significant financial decision, consulting with a solicitor or financial planner is crucial before proceeding with a Reverse Mortgage. Most plans include a “No Negative Equity” guarantee, ensuring that borrowers will not be forced to sell their homes unexpectedly.
Pensioners considering a Reverse Mortgage should also consult with Centrelink to ensure that their benefits remain unaffected. In most cases, this type of income does not impact pension entitlements, as it is derived from an owner-occupied residence rather than employment or investment income.
At AXTON Finance, we are dedicated to finding solutions that enhance the quality of life for our clients. In today’s economic climate, it might be time for your home to start working for you. If you’re considering a Reverse Mortgage or need more information about how it might benefit your situation, please contact us at AXTON Finance. Let us help you secure a more comfortable and stable financial future.
