Last week the ABC's 7.30 highlighted a recent study which confirmed that half of all 50 year olds expect to retire at 67, still carrying mortgage debt. There are currently one million households in Australia who have at least one person who is 65 years or older and is in debt - even more concerning 8% of those households have debt which is almost 3 or more times their annual income.
Unfortunately, it is now more common for homeowners to enter retirement with debt - including home loans, personal loans and credit card debt. Whether this is due to long term loans taken out in the last 15-20 years, health issues, employment changes, marital breakdowns etc., as Australians approach retirement, we are more concerned about how we will pay off these debts as we get older - particularly when superannuation balances may not be enough to repay what is owed.
Yet for many retirees the answer to paying off debt is simple - being able to access the equity in their home - debt free - pay off their loans and reduce financial stress in retirement.
Homesafe Wealth Release is the only debt free equity release solution which can assist a homeowner to eliminate debt. With Homesafe, a Homeowner enters into a contract to receive a payment from Homesafe now, in exchange for selling a share of the future sale price of their home. There are no repayments or interest charges, and Homesafe is only entitled to receive its share of the home when the homeowner eventually decides to sell.
Debt was the reason John and Sandra approached Homesafe last year. John has recently been diagnosed with cancer and Sandra is still working part time to help pay the bills. At 65 years of age, they didn't dream they would enter retirement with an amount still owing on their home loan. Due to illness and the unavailability of full time work for Sandra, their superannuation is not enough to pay off their debt and have some left over to live on. When John and Sandra met with a Homesafe Specialist, in the privacy of their own home, they were delighted to discover they could use the equity in their home when they needed it the most - without the need to downsize just to fund their retirement.
Many thousands of Homesafe customers have used the amount released with Homesafe to pay out loans, which in turn has removed the stress of being in debt and achieved the freedom of no longer struggling to make loan payments one month to the next.
Can we help you do the same?
Homesafe Wealth Release is not a loan or a reverse mortgage, but a way to sell a share of the future value of your home - and receive the cash you need today*. For more information please call Homesafe on 1300 307 059 or visit our website homesafe.com.au.
*Terms, conditions and eligibility criteria apply. Homesafe Wealth Release is available in 90% of eligible postcodes in Melbourne & Sydney.