Using a Reverse Mortgage to pay off debt
Residential property is the major component of wealth for many entering retirement. However, the boom in house prices has also led to an increase people carrying mortgages and debt into their retirement.
No one wants to spend their retirement years worrying about debt, and keeping up with repayments, but it is a sad fact that many do.
Heartland Seniors Finance has the solution you need.
With an interest rate that is often lower than credit cards or personal loans, a Heartland Seniors Finance Reverse Mortgage could allow you to access the equity in your home to pay off outstanding debt in retirement via a lump sum advance. What’s more, as well as debt repayment, additional funds could be accessed for any worthwhile purpose, including home improvements, travel, a new car, medical costs, or living expenses. As well as an initial advance, funds can also be drawn as a regular advance, or cash reserve (like a line of credit), adding further benefit.
If you currently have a reverse mortgage with another provider, Heartland also may be able to refinance this for you – to provide additional funds and flexibility in your retirement.
In addition, regular repayments are not required on a reverse mortgage. 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.
The removal of regular loan repayment obligations can free up cash flow and remove stress, providing the peace of mind to live a better retirement.
At Heartland, over 40% of our customers use a reverse mortgage to repay debt. Don’t just take our word for it, here’s what some of our customers have to say:
“Great relief when we found ourselves with no super left and needed to tidy up our finances”
“Thank you for continuing help and support. Always just a phone call away”
“A more enjoyable lifestyle is peace of mind”