Self-funded retiree and need some extra cash?
We certainly live in challenging times. Covid-19 is impacting on our daily lives and many self-funded retirees are doing it tough. Interest rates are at an all time low, many companies announcing reduced or no dividends, rental income reduced or gone completely. And your eligibility for most of the support schemes is limited or nil.
What is the answer? Sell some shares? Not a great time because these have taken a belting and you may not want to lock in those losses. Sell property? This may be a solution, but it takes time and there is downward pressure on prices in many markets, so this may not be the best solution either.
Perhaps an alternative may be to obtain a Seniors loan against the equity that you have in your personal home or an investment property. Granted that the interest rates are not as low as for traditional mortgages but the advantage is that if you don’t have to make any repayments; so there is no need for you to prove that you can service the loan.
This approach may also not be in your long-term best interest, but it may be an option to use this type of loan until other markets recover and you can then decide what is best for you.
When looking at getting a Seniors loan you need to obtain independent legal and financial advice. We can assist you in our part of the process, but you also need to talk with your other trusted advisers so you understand totally what the loan entails.
At Regional Finance Solutions we have several Lending Specialists that are well trained and experienced in assisting Seniors. To arrange a no obligation meeting to discuss your options please call us on 1800 734 346, if you don’t know how to do a Zoom meeting; we will also teach you that.