New Reverse Mortgage feature: ‘Monthly Regular Advance’
15 April 2016
Here at Heartland Seniors Finance we’re constantly striving to improve our services and products to serve you better, and to that end I’m pleased to introduce a new Reverse Mortgage feature: the 'Monthly Regular Advance' option.
In addition to our existing quarterly and annual regular advance options, Heartland now offers a monthly regular advance too. Just like our existing regular drawdown options, borrowers can also choose to receive payments over a five- or ten-year term for Reverse Mortgages (or five years for the aged care option).
The monthly option is ideal for borrowers who want to supplement their income streams to maintain lifestyle. This option may also work well for those who are moving to a residential Aged Care and need to pay a Daily Accommodation Payment on a regular basis.
Interest savings are a major benefit that borrowers may enjoy by choosing the ‘Monthly Regular Advance’. When drawing Reverse Mortgage funds via the monthly option, borrowers are only charged interest as they receive the money. When compared to a lump sum drawdown (in particular), interest savings generated over time can be substantial. It is a responsible way to lend, and also may help people avoid possible issues with Centrelink aged pension entitlements arising from the assets and income tests.*
How can you use your Heartland Reverse Mortgage Monthly Regular Advance?
- Supplemental income – monthly Regular Advances can supplement your income and boost your purchasing power to live a better retirement.
- Aged Care funding – moving into a residential aged care is costly. After paying a portion of your Refundable Accommodation Deposit (RAD), you may still need to pay an ongoing fees such as a Daily Accommodation Payment (DAP) or Basic Daily Fee. A monthly Regular Advance can take care of that.
- Support your lifestyle – taking a vacation, paying your bills or repairing your house can be less of a struggle with a regular income stream from a Reverse Mortgage.
Limited income in retirement is a concern for many. We hope that our latest Reverse Mortgage product innovation of Monthly Regular Advances, helps ease this burden.
If you want to get started, you can talk to one of our team at 1300 889 338. We are here to help you.
Chief Executive Officer
* Please contact Centrelink to discuss any impact borrowing may have on your pension or other government entitlements.