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Did you know reverse mortgage is one way of home loans?
Many New Zealanders enter retirement with limited cash reserves. For some, NZ Superannuation is their only income. Others may still be managing mortgage or credit card repayments – making it harder to enjoy the retirement they’ve worked so hard for.
For those aged 60 or over, there are ways to access extra funds and improve lifestyles. This might include:
- Downsizing
- Selling and renting
- Taking in a boarder
But for many, the preferred option is staying in the home they love. That’s where a Reverse Mortgage can help.
What is a Reverse Mortgage?
A Reverse Mortgage lets homeowners unlock some of the equity in their home – without having to sell or move. It’s a flexible way to access funds while continuing to live in and own their home.
There are no regular repayments required. Instead, interest is added to the loan balance, which is repaid when the homeowner permanently leaves the home.
What can the funds be used for?
A Reverse Mortgage can help with:
- Repaying existing debts – easing the pressure of regular payments
- Home improvements – keeping the home safe, warm and comfortable • Medical expenses – accessing care when it’s needed most • A new car – for safe, reliable transport
- Everyday costs – making life a little easier
- Travel – visiting friends and family, near or far
- Helping family – providing support or an early inheritance
Key features to look for:
- The ability to stay in the home for as long as they choose
- A guarantee that the loan repayment will never exceed the net sale proceeds of the home
- No requirement to make repayments until the end of the loan
Click here for more details, – it’s a helpful overview of how Reverse Mortgages work and what to consider.
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Patrick Wang
