Home Equity Loan For Seniors
Equity Release Benefits
Enjoy Your Golden Years with Home Equity Loan For Seniors
Are you over 60, own your own home, but struggling with your finances? If you are dreaming of a more comfortable retirement, releasing equity from your home may be the easiest and simplest option.
What is Home Equity?
Your home equity is the difference between your home’s market value, and the balance of any debt that you owe on a mortgage. There is a good chance that you have built up some equity in your house, especially if you've had it for a few years. Taking advantage of your home equity can provide a good retirement strategy. The best part is that it will usually not affect Age Pension entitlements, and you continue to live in your own home.
Types of Senior’s Home Equity Release
A home equity loan allows you to take a loan against the equity in your property.
There are a few options when it comes to leveraging your home’s equity. Ways to access equity in your home include Reverse Mortgage, Pension Loan Schemes (PLS), or home reversion schemes.
You may also have the option of selling or downsizing your home to access funds.
So, what are the different ways senior borrowers can release home equity?
What can you use your home equity loan for?
The key reasons for releasing home equity include:
You can use a home equity loan to finance your home improvements. Home renovations increase the value of a property; this is a real win-win situation as it can help increase the value of your property which leads to more equity.
Having enough equity in your home allows you to consolidate all of your debt into one large payment instead of having it split up into smaller payments. Besides saving on interest rates, it simplifies your financial obligations.
If you are looking to buy a new car, then, instead of the conventional choice of financing the car using an auto loan, you may be able to take out a home equity loan.
A home equity loan for seniors is also a potential way to fund your vacation.
You can access the equity in your home to fund a range of personal expenses, including education, wedding, or for emergency situations.