Reverse Mortgage & Accommodation Bond Loans
Reverse mortgages and Accommodation Bond Loans allow you to borrow money using the equity in your home as security. The loan can be taken as a lump sum, a regular income stream, a line of credit or a combination of these options.
Reverse mortgages allow people from the age of 60 to convert the equity in their property into cash for any worthwhile purpose without needing an income source. Interest is charged like any other loan and the borrower is not required to make repayments (although they can usually make voluntary payments if they wish). Products currently available also have a No Negative Equity guarantee which means that your loan will not become greater than the value of your property.
Some purposes a Reverse Mortgage may be used for include:
Home renovations and home maintenance
Pay off credit card bills
A new car
Education costs for grandchildren
Pay out an existing mortgage
An overseas holiday
Accommodation Bond Loans are a form of Reverse Mortgage and are designed to fund the bond payment required when people move into an aged care facility, and/or to fund the ongoing costs associated with aged care.
This type of loan option provides a flexible solution for senior clients who wish to retain the benefits of owning their own home and at the same time secure a place in a residential aged care facility of their choice.
It enables you to continue to own your own home, whilst renting it out to generate additional income, allow family members to move in, or simply arrange a more orderly sale of the property. It also enables you to retain your Centrelink entitlements for longer.
The Loan Market Greater Springfield team can work alongside your financial and legal advisers to structure your financing needs in preparation for moving into aged care