Using a reverse mortgage as a car loan
Statistically, senior drivers are some of the safest drivers on Australian roads. However, even though they are safer on the road, because of financial constraints many Australian seniors continue to drive older model vehicles that are more difficult to operate, and have lower safety ratings, than a newer car.
In addition to improved safety, technology in modern cars is continuing to add benefits, with improved fuel economy, an increase in driver comfort, and better reliability – helping to improve retirement quality.
Understandably, Australian seniors do not want to exhaust what savings they have by using this cash for a large asset purchase, but many can find it difficult to secure a car loan from the banks to update an old vehicle.
Upgrade to a more reliable car with a Heartland Reverse Mortgage
Almost 85% of Australians aged 65+ own their home and, for most, it is their most valuable asset. With a Heartland Reverse Mortgage, you may be able to access a portion of this wealth to purchase a new car, or pay for needed repairs and maintenance to your current vehicle.
One of the benefits of using a reverse mortgage as a car loan is that regular loan repayments are not required. The interest is calculated on the balance outstanding, and added monthly to your loan. Voluntary repayments can be made at any time if you choose, which reduces the balance and interest charged. At the end of the term of your loan, when you move permanently from your home, the total interest charged, together with the amounts drawn, will be payable.
The absence of mandatory loan repayments can reduce stress and free up cash flow, giving you the peace of mind to live a more comfortable retirement!
At Heartland, over 20% of customers use a reverse mortgage for car replacement or repair. But don’t just take our word for it, here’s what some of our customers have to say:
"With the new car and house improvements in our stage of life made things more enjoyable."
"My Heartland loan enabled me to travel, help family members and purchase a new car. I will be recommending your services to my friends."
"All seniors would find your information most valuable. There's so much information out there, most people think who do we trust? We trust you."