A Reverse Mortgage Loan is designed to provide funds to people 60 and over by unlocking some of their home equity. With a reverse mortgage loan, you can continue to live in and own your home for a more comfortable retirement.
Reverse Mortgage Loan Usage
- Debt Consolidation — Allows you to unlock some equity in your home for debt consolidation in retirement through a lump sum advance.
- Vehicle Finance — Purchasing a new car can provide our customers comfort, safety, and reliability in retirement.
- Aged Care — Pay for your aged care accommodations.
- Home Improvements — Make your home fit for purpose with home improvements, repairs, and renovations.
- Home Care — Get home care funding and age in place — in your own home.
- Travel and Holidays — Pay for your next local or overseas travel and holidays.
- Day-to-day Expenses — Relieve the stress of everyday expenses.
- Seniors Cruise Finance — Take a cruise around Australia or abroad.
- Bank of Mum and Dad — Instead of your retirement fund, access the Bank of Mum and Dad to help your family.
ASAG Reverse Mortgage Loan Features
An important decision to make when you take out a reverse mortgage loan is which lender to choose. These are some of the features that can help you consider ASAG as a provider.
To make you confident with your decision to take out a loan through a reverse mortgage, ASAG offers lifetime occupancy. This is so you can continue to benefit from any increase in property value. A ‘no negative equity guarantee’ is also offered to protect you from owing more than your property’s value. Seeking independent legal advice may also be required.
ASAG solutions help to facilitate unlocking only what you need. To manage access to your home equity, we give you flexible drawdown options that can be used in combination, such as a lump sum advance, regular instalments, or cash reserve.
Repay without penalty
An ASAG Reverse Mortgage Loan does not require regular repayments, as it is repaid from the future sale of the property. Although, you can still make repayments if you prefer to, at any time without penalty.
Equity protection option
Customers may choose to protect 10%, 20% or an allowable percentage of the net proceeds from the sale of the property. It means the protected percentage is theirs, regardless of the loan balance on discharge. Although, this option will reduce the loan amount available by the selected percentage.
Some reverse mortgage providers will not give funding where the customer no longer lives in their home. ASAG offers this solution for people who are already in a residential care facility or those planning to move into care in the future.
If you liked our “How To Use An ASAG Reverse Mortgage Loan” and took away some valuable information, check our blog space regularly for more updates on reverse mortgages and equity releases.