Using home equity for renovations
Equity release benefits
Living life your way. Fund renovations with a Reverse Mortgage
Do you want to enjoy your retirement and live life your way at home? Want to improve your overall wellbeing and future-proof your house?
You are not alone. Studies by the Australian Housing and Urban Research Institute (AHURI) illustrate that around 80 per cent of Australians aged over 55 prefer to age in the comfort of their own homes. Seniors First offers a solution to help you renovate your home for ease of living, mobility, comfort or street appeal. By refinancing a Reverse Mortgage, you can retire stress-free whilst also benefiting from increases in the value and the longevity of the property.
Home renovations can further provide peace of mind for seniors who can be more prone to injury. Common improvements involve installing handrails, fixing uneven floorboards and bathroom or kitchen safety modifications. A Reverse Mortgage can additionally provide you with funds for minor home repairs such as smoke alarms installation, securing cords and fall prevention etc.
Alternatively, if you already have a Reverse Mortgage with another lender and you are seeking a lower interest rate, Seniors First can help you refinance. A Home Equity Release refinance to a cheaper rate may help preserve more home equity for spouses, children or other beneficiaries.
Benefits of Reverse Mortgage for renovations
By releasing the equity of your home, you will not have to go through the emotional burdens of having to move or sell. As you remain the full legal owner of your home, you will also benefit from any increases in property value from improvements and remodelling.
You may choose to receive a lump sum, regular income payments, a cash reserve or a combination of all three. A Reverse Mortgage is perfect for seniors wanting to eliminate financial obligations as no regular repayments are required (although voluntary payments can be made if you wish).
Reverse Mortgage interest rates are typically lower than that of high-interest personal loans or credit cards. If you are an individual who is asset rich and cash poor with a limited income, refinancing with a Reverse Mortgage for home renovations may substantially improve your quality of life. The accrued interest is ‘capitalised’ and charged back to the loan account each month.