Breaking news: Reverse Mortgage Lender Launches ‘Monthly Payments’ Drawdown Option.
One of our partner lenders, Heartland Seniors Finance, recently just announced a new product enhancement for reverse mortgages. Heartland now offers monthly regular advances in addition to their regular quarterly and yearly advance options.
This is great news. Now if you are a home owner, you may not need to worry about not having enough monthly income to fund your lifestyle. Based on your preference and need, you can also determine whether you’d want to receive payments over five- or ten-year period for reverse mortgages, while you can have a five-year term for the aged care option.
The monthly regular advances work great for borrowers who need supplemental income to maintain their lifestyle during retirement. This may also be ideal for those who are about to enter a residential aged care. With regular monthly advances, it can be easier & more cost effective to pay a Daily Accommodation Payment (DAP).
Another benefit of regular monthly advances is a substantial interest saving. With a monthly drawdown option, you will only be charged interest gradually as you receive the principal amount each month. The interest you may save over time – compared to drawing a larger lump sum of capital at the outset of the reverse mortgage loan – can be substantial.
You can use your reverse mortgage for many purposes. In addition to supporting your lifestyle, you can also use your reverse mortgage for debt payments, aged care funding, or home improvements. The possibilities are endless.
To be sure, growing old has its own struggles and fears. But with responsible borrowing it’s possible to unlock wealth from your home with a reverse mortgage and enjoy better cash flow in retirement. Seniors First is a trusted reverse mortgage broker and can help you get started. If you want to know more about our lender products and services, please call 1300 745 745.
Disclosure: This comment is made as Seniors First Managing Director, but note Darren Moffatt also provides paid consultancy services to Heartland Seniors Finance from time to time.