Individuals planning for retirement can get significant benefits from reverse mortgages. Reverse mortgages are often a perfect fit for senior homeowners for several reasons. Here are a few of the ways a reverse mortgage can be the right solution for you.
Paying for long-term care
If you or your loved one must move into aged care, there are considerable expenses involved including accommodation charges and care charges. Care charges include fees such as the Basic Daily Care Fee, the Daily Means-Tested Fee, and Extra Services Fees. These charges can add up fast – in fact, the Accommodation Charge alone can be as much as $500,000 or more. Your aged care loan consultant can help you understand your options for meeting these upfront and ongoing expenses. Your home is likely your most valuable property, so using it to fund your aged care may make sense. A reverse mortgage allows you to retain your home as you repay the loan, saving you and your family substantial amounts of money and stress over time.
Creating an additional income stream
It can be challenging to make ends meet on a fixed pension or superannuation income. Besides your regular bills and daily needs, you may also need to come up with extra money to cover large expenses such as health insurance, prescription drugs, and medical bills. You can speak with your loan consultant about how a reverse mortgage can help cover these expenses or even pay for a long-awaited dream holiday if you’d like.
Paying for home improvements
If you would like to move and spend your retirement years in another location, perhaps closer to your family, you may need to sell your home. To get the best price possible and sell quickly, you may need to complete some home renovations or improvements such as upgrading the kitchen or refinishing old hardwood floors. A reverse mortgage loan unlocks equity for you to use to pay for these improvements, making this type of loan a great investment as it can ultimately increase the value of your home.
Retaining your home
On the other hand, if you’d like to stay in your home as long as possible, a reverse mortgage loan can help you do just that. Reverse mortgages can get you the funds you need without having to move out of your home or make monthly mortgage payments. You can use the money from the mortgage to cover maintenance, repairs, or remodelling of your home or other expenses such as travel, aged care, or just daily living expenses.
Where to find aged care loan brokers
At Reverse Mortgage Finance Solutions, we help people who are looking for aged care loan specialists to guide them through the complex issues of retirement finances. We are committed to providing the best possible advice and service to our clients and have the experience and knowledge to put forth the best options and help you make the right decision for you. If you’re looking for aged care loan specialists or brokers, contact Reverse Mortgage Finance Solutions today.