Skip to main content

Reverse Mortgages

You could live the retirement you deserve

Relieving stress in retirement

We are living longer than ever before. A growing number of Kiwis are going into retirement carrying debt and they are unable to enjoy the retirement they deserve. However, there are other options for retirees other than downsizing their homes, relying on credit cards and existing mortgages.

What is a reverse mortgage?

A reverse mortgage is similar to a regular mortgage but designed to meet the needs of people over the age of 60. It allows people to access the equity in their home to fund a more comfortable retirement, while continuing to own and live in their own home.

The benefits of a reverse mortgage

  • No regular repayments are required, depending on the provider voluntary repayments can be made at any time.
  • Reverse mortgages can be used for almost anything often they’re used for home improvements, consolidate debt, healthcare needs and day to day expenses.
  • Some reverse mortgages can be tailored to provide flexible access to what you need, when you need it. You may be able to draw down a lump sum, receive regular repayments, a line of credit, redraw or a combination.
  • You can continue to own your home and are able to live there as long as you wish.
  • The loan will never exceed the net sale proceeds of your home.
  • The amount that can be borrowed depends on factors including your age and home value.

Some important considerations

Future needs

  • It is possible to access some of the equity in your home without impacting government entitlements. There are flexible drawdown options such as lump sum up front, regular ongoing advances and cash reverse top-up facility for your future needs.

What costs are involved?

  • Loan interest is compounding, which means the loan balance increases over time as interest is added to the loan. There are fees and charges for setting it up, including independent legal advice. There are no regular repayments required although you can do so at any time.

When is the loan payable?

  • The loan will be payable when you move out permanently. This is usually from the sale of the property, passing away or moving to aged care.

To find out more about a reverse mortgage, get in touch on. We’re here to help. Lending criteria, Terms and Conditions will apply.

Read more …

  • Last updated on .