The Seniors Loan Specialist
It’s Your Life! You Only Live Once! Live Life to the Max!
From the Director…
Welcome to The Seniors Loan Specialist Information Page. I am pleased that you have arrived here, and I trust I can help you understand Seniors Loans and how they can be of benefit to you. Anyone over 50 needs a special loan solution, and I love helping Seniors with appropriate financial solutions specific to their needs.
It is important to me to see that you have the best opportunities available, to live the life of your dreams and to have any financial burden lifted. Understand the real pros and cons of downsizing to release equity. Access Aged Care if you need to, without being forced to sell your home. The ideas, dreams and wishes that you have, can often become a reality with the right information and assistance.
I feel compelled to make the best solutions available and I do not like to hear about those who get caught in less desirable offerings which can result in negative outcomes.
You have worked hard for many years to create the resources you have. You have provided for the needs of your family over a lifetime and paid off your “Castle”, as some refer to it. If you have been fortunate you have even put some savings aside. Maybe the savings are not going the distance. If you are on the pension, you will know that the pension is not going to provide many luxuries.
Whatever your circumstances, whatever your need, I, or one of my specialist colleagues, will provide you with the best financial information and solutions available. Let us listen to your needs and explore the options with you at your pace. We explain everything you need to know, so that you can make wise and confident decisions regarding your financial needs and your future.
Do not assume that you need to sell your home!
Do not assume that you need to downsize!
Why spend a small fortune on moving costs and real estate agent’s fees, as well as stamp duty and Strata Fees when you buy again?
Even more important, why go through the enormous emotional upheaval of leaving the home you have created and the community you know?
Why throw away your keepsakes and treasures?
Why say good-bye to long-standing friends when you move to a less expensive, and unfamiliar area?
Do not assume you need to continue to struggle paying a mortgage every month or struggle to pay other expenses!
We will be delighted to personally help you to a great outcome with all the information you need. Maybe a Reverse Mortgage will enable you to have a great holiday, renovate the house, pay out a mortgage or provide for other wants and needs. Do you, perhaps, need an Aged Care Loan to pay for Aged Care Accommodation or In-Home Care? Whatever your situation, feel free to call me and have a confidential chat, on the phone or over a cup of tea. It helps to talk these things over to get clarity and see what your opportunities are. Our service is very personal. We want to make sure you get the best outcome.
I am looking forward to your call.
All the best till we talk soon,
Landline: (02) 9653 2034
Mobile: 0414 903 443
Looking Forward to Your Call
Loans Available for Seniors
Once You Turn 50
Anyone over 50 needs special help getting finance. If you are still working you will be able to get a loan based on your income but the loan term may be shortened making the repayments higher and the serviceability tougher. It will be much easier for anyone over 50 to use a broker to locate the best options for refinancing and purchasing.
Once you stop working, or reach the age of 60, it may be preferable or necessary to use a reverse mortgage which is designed particularly for seniors.
Firstly, I would like to mention the one option that we do not offer, and explain why not, so that you understand our position right from the beginning.
The Home Reversion is a scheme where a bank or so-called lender buys a percentage of your property. You are then co-owners of the property with the bank. Don’t be fooled! This is not the same as a Reverse Mortgage! It is not a loan. “They” are not lending you money against your home. It is a partial purchase.
The valuations for this type of scheme typically come in very low so you risk being paid a below-market sum for the percentage being purchased by the lender. Conversely, if you want to buy back the percentage previously sold, the valuations typically come in high, so you might find yourself paying a higher than market price to get that percentage back. The fees payable to get out of the scheme are also high. To summarize, it is difficult and expensive to get that percentage of your property back, if you so choose. This type of scheme is banned in some countries. If you are considering this type of arrangement, please call us. We will go through it with you, in detail, explain our reservations, and possibly save you some heartache.
We do not offer this type of arrangement. We only offer real loans which can be repaid at any time.
The Reverse Mortgage
A Reverse Mortgage is available to those who have reached 60 years of age and who own or mostly own their own home. It is a real loan just like any other home loan. Repayments can be made at any time, just as with any other loan. The main difference is, that the borrower does not have to make any repayments during the life of the loan. Interest is added to the loan for the duration of the loan.
If, after you have taken a Reverse Mortgage, you come into some money (for example an inheritance), then you can, if you wish, repay some, or all, of the loan without penalty. (There would still be the normal discharge fees, as with any other mortgage loan.)
There is a guarantee for lifetime occupancy. The loan only becomes repayable when the last surviving borrower passes away or moves into a full-time care facility. In the case of the last surviving borrower moving into a care facility, the loan may be transferred to a care loan depending on re-assessment. In the case of the last borrower passing away, beneficiaries are usually given about 6-9 months grace time for probate and to sell the property. The loan is then repaid on settlement of the sale, and the beneficiaries retain the balance.
Some people worry that the loan will become so big, that the sale of the property will not cover what is owed. This cannot ever happen in Australia because a “no negative equity” guarantee, guarantees that Reverse Mortgages cannot exceed the market value, i.e. that figure that can be realized by sale on the open market.
The amount that you can borrow in a Reverse Mortgage is dependent on the age of the youngest borrower. It starts at 15% (of your home’s value) at 60 years of age, increasing up to 45% at 90 years of age.
As time progresses, a property generally increases in value, and this increase in market value tends to balance out the increase in the loan value from the added interest. If property goes up an average of 10% per year and the average interest on the Reverse Mortgage is say 7%, then the market value less the loan value, will still be increasing over time.
Don’t worry about any of that detail for now. If you should decide to apply for a Reverse Mortgage we will provide all the information you need, and demonstrate to you how the equity will be affected over time with different criteria.
A Senior’s home is like a gold mine. Think about the amount of money you have sunk into your home over the years. The house is hopefully paid off before we retire. Hopefully, enough has also been saved to fund the retirement years, such as in a Superannuation Fund. The problem is that many Australians do not create a retirement fund large enough to fund their retirement, and they find themselves reliant on the Age Pension to provide their day-to-day living expenses as well as any additional needs that arise. The retirement life that was dreamed of slowly fades away and financial survival becomes the way of life while the retiree’s equity is locked up in their home. ‘Asset-rich but cash-poor’, as some would say. Many people downsize in order to release this equity to provide for their lifestyle, but this is not necessary. Not only that, but it is costly to pay sales agency commission, purchase stamp duty and moving costs etc.
A Reverse Mortgage allows a Senior retiree to access the equity in their home and provide the funds they need for their life. That resource is their resource. The money that can be accessed is their money that they have saved by paying off their home over their life time. In this way they are often able to fund their needs, and in many cases, can fund a very enjoyable lifestyle, and not be dependent on relatives to provide over and above the pension they receive.
A Reverse Mortgage can be used for anything you can dream up. Many take a Reverse Mortgage to set themselves up for their retirement. They very often purchase a new car to last the distance, buy a campervan and travel around Australia, or repair or renovate their home.
It can be sheer relief to pay off all the credit cards and get rid of them – they are an expensive and relentless treadmill! Some refinance an existing mortgage to a reverse mortgage so there are no more repayments. The idea is to make life what you want it to be.
The Aged Care Loan
For some there comes a time when they can no longer look after themselves, and their family members cannot carry the burden any longer. If, and when this time comes, and an Aged Care Facility is the obvious choice, then the Accommodation Bond or Daily Accommodation Fees for the Aged Care Facility may be accessed from the value of your residence.
The Aged Care Loan is the same as a Reverse Mortgage, but with a designated use, i.e. to pay for Aged Care. It has a term of 5 years and rarely needs to be extended. It allows a Senior person to live in a safe environment, have all their needs met, be able to socialize with others of the same age group, and have interesting activities arranged for them. For many it is a joyous place of safety and social connection, free from any concern.
If this situation applies to you, or to someone close, feel free to call and have a friendly discussion. We care too!
The Over 55’s Home Loan
If you are ‘mature aged’ and still working, yet finding it a challenge to arrange a home loan to purchase a home or refinance an existing loan, let us help you. We understand what is needed to satisfy the regulatory banking guidelines for more mature people seeking finance. We will help you present your information in a compelling way so that lenders are encouraged to approve the loan. We know what to do to get your loan across the line.
Case Studies (names changed for privacy)
Lester is a friendly happy man who loves to take off on trips around Australia. Aged 72, Lester took a reverse mortgage, bought a brand, new, car and a fully kitted caravan. He set up a reserve in his reverse mortgage so that as he travels he will have funds he can draw down if at any time he needs more than his pension. He is happy and now free to travel around Australia as he wishes.
Stephanie is an amazing active 75 years young woman who loves travelling. She took her first reverse mortgage 10 years ago and travelled the world and involved herself in many touring activities in Australia as well. Recently, Stephanie refinanced to a new reverse mortgage to release more funds to continue her travelling, go on cruises, and tours to exotic places. She has a bucket list, and nothing is going to stop her. Her son is very supportive and wants to see her having a great life.
Peter and his wife Margo came to me with a few credit cards that were all maxed out. Life was miserable as they were on a treadmill keeping up with ever-increasing payments. They took a reverse mortgage, cleared all the credit cards and were able to start living with more peace of mind, doing the things they loved without worrying, eating out, going out for coffee and the occasional holiday to visit the kids who live overseas. Peter’s remark “it feels like a huge weight has been lifted off my shoulders”, showed me what a difference it made to their lives.
Anne and Derek
A young couple, Anne and Derek, came to me some time ago and they wanted a loan to buy their first home. They said they didn’t have a deposit or the money to pay the stamp duty but Anne’s grandmother was happy to take a reverse mortgage to provide the deposit they needed. I set up the reverse mortgage and Anne and Derek were able to buy their home.
Tiffany and David
Tiffany and David used their reverse mortgage to update their home which had become tired and in need of repair and renovation. They needed funds to freshen things up. And it was quite invigorating to create the life they wanted and lovely surroundings for the years ahead.
Luke and Sarah
Sarah was hit with some heavy health issues requiring long stays and treatment in hospital. There were some significant out-of-pocket expenses and they were able to use a reverse mortgage to cover these health care needs. It was such a relief to them when funds were available to meet these needs and they were so pleased to remain independent and not feel indebted to family members.
Robyn and Maria
Robyn came to me needing a Care Loan to pay the bond for her Maria who is 90 years old. Maria had been fighting fit until she had a stroke. Now she needed assistance and Robyn had found a wonderful Aged Care Facility but needed the money to pay for it. Even though she had a Power of Attorney, Robyn couldn’t sell her mother’s home because a developer had an option to buy the property. This caused some issues with the lenders but after some negotiations and exceptions being allowed, one of the lenders agreed to provide the Care Loan. The facility was paid, the daughter was free to move into her new home, and everyone was very happy.
Whatever your dream is, make it a reality. Use the resources you have accumulated over your life time. You only have one life, and time really does fly. Do all you want and dream. Live with passion, freedom and determination. Enjoy your life!
Whatever finance you are seeking, we have relationships with over 50 lenders and we know what each lender will do. We also have wealth-building options in property that even the mature aged can employ to create an income.
Call and discuss your needs with us today. Find out what options are available to you.
Landline: (02) 9653 2034
Mobile: 0414 903 443
Looking Forward to Your Call