|
Crown will find YOU the Home Loan that will save you the most amount of TIME and MONEY in 4 Very Simple Steps...
...and You will Receive Our eBook:
"How To Get Out Of Debt In Half The Time & Pay LESS per Month!" FREE!
|
Senior Access Loan: Unleashing the Dragon of Equity
St George Bank
| 
| 
| 
| 
| 
| 
| 
| 
| 
| 
With the proportion of Australia's population aged 65 years and over expected to almost double within 40 years, banks and financial institutions are continually exploring products specifically tailored to help retirees. St George Bank's Senior Access Loan is a reverse mortgage, which mean it's the bank who pays the homeowner instead of the other way around. It means that retirees can tap into the equity of their property usually their biggest asset to find a lifestyle they might not otherwise be able to maintain.
Lenders can pay anywhere between 10 and 50% of the value of the property, depending on the retiree's age. St George offers a range of 15 to 25% with payments strata starting for borrowers over 63 years, all the way up to 80 years of age and over. Basically, the older you are, the more you can borrow.
The Senior Access payment is available as a lump sum, or can be paid similarly to an income in order to supplement savings or a pension. The money can be used however you wish, so a new car, caravan or cruise around the world may not be out of the question.
As there are only a limited number of lending offering this service at the moment, St George offers a variable rate that is 1% higher than the standard variable rate. This interest is gradually added on to the total debt over time. Retirees can make voluntary payments towards their Senior Access Loan at any time, but the good news is that the debt doesn't have to be paid back until the property is sold, or the borrowers no longer live in the home, or the borrowers are deceased. It's a non-recourse loan, so retirees will not be able to owe more than the value of their property.
While St George's Senior Access Loan means that retirees may not have sacrifice their quality of life to fund their retirement, it's important to remember that the debt will dissolve any increased equity that may result from rising property values. Another downside of St George's Senior Access Loan is that is restricted to certain locations around Australia, so it's not currently available nationwide.
The popularity of reverse mortgages is set to rise, as our population ages. Using a reverse mortgage such as St George's Senior Access Loan could be the ideal solution for some retirees, but it is always worth exploring all of the options available before making a commitment.
Bookmark/Search this post with:
| | | | | | | | | | 