If you are over 60, and you own your own home with little or no mortgage, you may be eligible for a reverse mortgage. Reverse mortgages (sometimes referred to as Home Equity Release loans, Lifetime Loans or Reverse Annuity Mortgages) allow senior homeowners to access equity in their homes for whatever purpose they desire, without the requirement that the loan is serviced from income. That is, the interest on the loans is not required to be paid as you go but added to the loan balance and paid when the property is eventually sold.
Ownership of the property remains with you.
We regularly encounter senior homeowners who own their own home but have little or no money in the bank. Some have mortgages. Most enjoy their home but are not ready to move. But they want to enjoy the retirement that they worked a lifetime to achieve.
Many want to travel overseas while they are in good health. During their working life they might have had money to spend on overseas travel but insufficient available time to go to the places that they really wanted to see. Some find that in their retirement they have the time to travel but they lack the money to do so.
Some want to attend to maintenance on their homes. Painting the house and / or replacing the roof doesn’t come cheap, but they eventually need to be done. New kitchens, walk-in showers and heat pumps can also be very appealing. When you spend so much time in your home, you want to be comfortable.
Others want to buy motorhomes and spend weeks or even months travelling the country.
Cars can get to the point where they are costing more than they are worth.
Cataract removal (or even new glasses) can make life that much more enjoyable, too.
Reverse mortgages can make a real difference to those that can benefit from them.