How To Secure Extra Finances During Retirement
Residential homeowners looking to secure extra finances during retirement may wish to consider a reverse mortgage.
A reverse mortgage allows you to borrow against the equity of your property to obtain finance for a variety of purposes, including medical expenses, renovations, holidays and many more.
The point of difference in this type of equity home loan is that it does not generally require regular payments and is generally paid off when the owner sells their property, moves into a retirement home or passes away.
Age is an important determining factor when it comes to borrowing capacity and every situation is different.
It is recommended that you speak to a mortgage broker about the pros and cons of a reverse mortgage to ensure a tailored solution for your particular situation, rather than buy an off-the-shelf product from a lender.
It is also a good idea to inform your family of your intentions to secure this type of home equity loan, as these agreements can have far-reaching effects.
All reputable lenders will offer a no negative equity guarantee - meaning the amount you borrow will never exceed the value of your real estate.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.