The reverse mortgage lender, Heartland Seniors Finance, recently launched a new reverse mortgage TV ad campaign.
It’s amusing and witty, but addresses the serious need to help Australian seniors become more aware of the financial options a reverse mortgage loan can offer. Watch it below
Breath of Fresh Air
Heartland’s TV ad is a breath of fresh air.
It’s the first TV campaign for a reverse mortgage product in over 10 years in Australia. It will go some way to quenching the demand for information on reverse mortgages, and will hopefully help educate people on this important financial product for Australian seniors.
A reverse mortgage can help homeowners over 60 years, who are “cash-poor but asset-rich”.
By applying for a reverse mortgage solution, the home equity can be ‘unlocked’ to secure a loan from a lender. Seniors can access more cash, to enjoy a better retirement lifestyle.
Government Is Now Supportive of Reverse Mortgage
Since 2011, the Australian government has imposed a series of stricter policies to regulate the provision of reverse mortgages. Increased regulation if a good thing, as it helps safeguard the interests of Australian seniors and ensures that they understand the inherent risks of ‘home equity release finance’.
The signs are that the government is increasingly supportive of reverse mortgages.
The Productivity Commission even released a report in 2016 stating that most older Australian homeowners on low incomes could live a modest retirement if they convert a percentage of their home equity to liquid cash.
Plus, the government also recently expanded the Pension Loans Scheme (PLS), which is similar to a private reverse mortgage though it has some limitations (borrowers can not draw a lump sum, for instance).
How Much Can I Borrow, Reverse Mortgage ?
The amount that you can borrow for a reverse mortgage will depend on your age, and the value of your own home.
You may choose to receive the loan proceeds in lump sum, in regular payments, or credit line.
And be sure to read the fine print before you sign any reverse mortgage loan agreement.
Here are some important points that you should remember about reverse mortgage loans:
- You still need to pay for property taxes, maintenance cost, and insurance.
- You may choose not to pay for the loan but the interest will be added to your balance each month, so the interest will compound over time.
- The loan must be repaid first before you can sell the property.
- The loan must be repaid once both you and your spouse have passed away.
- The bank does not ‘take your home’. The lender cannot force a sale of your home as long as you do not default under the agreement by breaching key obligations.
Consult a Reverse Mortgage Specialist Today
To help you learn more about reverse mortgage, you can download our FREE REVERSE MORTGAGE GUIDE.
You can also call Seniors First Finance at 1300 745 745 to talk to a reverse mortgage specialist or post your comments below.