Many seniors are now living in homes that hold much of their wealth. By accessing this wealth without having to move or relinquish ownership can open many doors for someone in this situation. This is called a Reverse Mortgage.
Put simply, A Reverse Mortgage enables a person to access the equity in their home without having to sell their property.
This type of mortgage can free you up to do the things you have always wanted to do, like take a holiday, buy a new car, complete some much-needed renovations or simply have a little extra cash to supplement your existing income streams to make life a bit more enjoyable.
The amount you are able to borrow depends on a number of factors, such as your age and the value of your home. You are able to live in your home for as long as you wish, benefiting from any potential increase in property values.
The Reverse Mortgage becomes repayable when you sell your property, move into long-term care or pass away.
Aged Care Accommodation Bonds.
If you have a parent or have a partner that requires aged care accommodation but you are not willing or able to sell the family home immediately, then another option might be an Accommodation Bond.
Rather than selling your home to pay for the bond, the Aged Care Accommodation Bond allows for money to be released from your property to help pay the aged care facility. This is called the RAD (Refundable Accommodation Deposit) and is refunded to you or your estate when you leave care – this bond must be paid back within 5yrs of its inception.
Both Reverse Mortgages and Accommodation Bonds are very complex products and require a great deal of research to ascertain if they are suitable for your circumstance.