Using a Reverse Mortgage for home repairs and improvements
In June 2018, CoreLogic reported that the value of residential property in Australia reached $7.6 trillion, up from $7 trillion at the same time last year. This is almost three times the value of the money held in superannuation, and over four times the value of the share market.
For most seniors property, and particularly the family home, is their most important asset. As the cost of living rises in Australia, being able to find the funds to maintain this important nest egg often becomes harder, particularly when competing with more immediate priorities such as food, utilities, and other everyday bills.
The longer home repairs and maintenance are delayed, the higher the risk of permanent damage to the property. This can, in turn, reduce the value of your home and quality of retirement.
In addition, there may be important health and medical reasons why certain home improvements are needed. These include:
- Installing rails, bars and other safe guards to prevent falls.
- Rearranging the kitchen to enable easier, safer access.
- Repairing cracked pavement or concrete around the home to prevent falls.
- Installation of a stair-lift to aid mobility.
Improve your property with a Reverse Mortgage loan for home repairs
Finding the money for property related expenses can be difficult as it is unlikely, if you are senior with no ready funds available, that a traditional mortgage or personal loan can be obtained because of age or income. For those who do, repaying it from superannuation or the aged pension can add additional stress. That’s where Heartland Seniors Finance can help.
With a Heartland Seniors Finance Reverse Mortgage loan, you may be able to access the equity in your home to pay for needed repairs or improvements to your property.
One of the benefits of a reverse mortgage is that regular loan payments 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, 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.
At Heartland, approximately 50% of our customers use a reverse mortgage for home repairs, renovations and improvements. Don’t just take our word for it, here’s what some of our customers have to say:
“It has got harder and harder to manage on just the pension.. Now I can afford to have a gardener to smarten up my garden. I can also have some house maintenance done.”
“My loan has enabled me to fence my home thus making me feel very safe and secure, and peace of mind that I can keep warm by paying my heating account.”
“This loan has enabled us to remain in our home and continue to be useful members of a small community. The medical services provided here are excellent and we’re both in need of them”