How are you protected with a reverse mortgage?

How are you protected with a reverse mortgage?

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Heartland Seniors Finance is Australia’s leading reverse mortgage provider who have assisted over 17,000 people aged 60 and over release equity from their home to live a more comfortable retirement.

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Advertiser content for Heartland Seniors Finance.

Over half of Australian seniors rely on a government pension or allowance as their main source of retirement income, and yet the age pension does not cover what is considered to be a comfortable lifestyle in retirement. As a result, many Australians may be struggling to enjoy the retirement they deserve.

You may have considered downsizing to free up some home equity, only to find the expense and loss of your home unappealing. After all, your home is much more than a house - it provides peace of mind, proximity to friends and family, community connection and cherished memories.

It can seem like tightening the belt is the only way to continue living where you love - but bill stress can also reduce the quality of your retirement, particularly if you are relying on credit cards or a personal loan to make ends meet. Another option, which enables you to continue living in your home as well as access its equity, is a reverse mortgage.

A reverse mortgage is like a normal home loan that has been designed to meet the needs of seniors. It can enable you to access your home equity without having to sell, allowing you to enjoy a more comfortable retirement.

Not a lot of people are aware that reverse mortgages are arguably one of the most heavily regulated consumer finance products in Australia and have significant safeguards in place.

When choosing a reverse mortgage, it is important to ensure that you are choosing one with protections that go above these regulations to provide you with maximum peace of mind.

Six key features to look for in a reverse mortgage are:

Ownership

You remain the owner of your home and continue to live there for as long as you choose, enjoying the independence and connection it provides to your community, family, and friends.

No Negative Equity Guarantee

Provided the terms of the loan are met, the amount required to repay the loan will never exceed the net sale proceeds of the property.

Independent Advice

Independent legal advice should be compulsory. This ensures you are making an informed decision. In addition, independent financial advice, and discussion with family and Centrelink, should be encouraged.

Loan Repayment Flexibility

Regular loan repayments are not required on a reverse mortgage. Interest is added monthly to the loan, and only when you move permanently from your home is the total loan repayable. However, you should choose a loan where voluntary repayments can be made at any time without penalties applying.

Equity Protection Option

An Equity Protection Option allows you to choose to protect a portion of the eventual net sale proceeds of your home. When your loan is repaid, you or your estate then receive, at a minimum, any chosen Equity Protection percentage.

30 Day Cooling Off Period

If you take out a loan and have a change of heart, a cooling off period could allow you to cancel your reverse mortgage within 30 days of settlement and repay your loan at no additional cost.

Heartland Seniors Finance is Australia’s leading reverse mortgage provider. Established in 2004, Heartland’s products have assisted over 17,000 people aged 60 and over release equity from their home, and live a more comfortable retirement.

The Heartland Reverse Mortgage is flexible, award-winning, and provides all of the above protections and features. Find out about how a reverse mortgage could help you on our Reverse Mortgage Key Information page or give our friendly team a call on 1300 889 338.

  • Important Notice: Every situation is different - this information has been prepared without taking into account your needs, objectives, or financial situation.  If you are considering a reverse mortgage, we encourage you to understand how it may affect your personal circumstances - talk to friends and family, speak to professionals, and use the resources and tools Heartland has available.
  • Loans are subject to loan approval criteria. Terms, conditions, fees and charges apply. Credit provided by ASF Custodians Pty Ltd (ACN 106 822 780 / Australian Credit Licence No. 386781).

Advertiser content for Heartland Seniors Finance.

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