Seniors Loans – unlocking the equity in your home to fund the lifestyle you deserve

There is a range of products known as seniors loans. You might recall, back in the 1990s and early 2000s, they were known as ‘reverse mortgages’. They got a bit of a bad rap, and rightly so.

However, as with many other things, the finance industry has evolved. It learned from its mistakes and, rather than using one product as a ‘one size fits all,’ we can now sit down and discuss highly personalised, tailored loans to suit the needs of every individual.

What you can borrow will depend on your age. The younger you are, the less you can borrow. As you get older, this amount will increase. The maximum loan is a mix of the value of your home and a percentage determined by your age.

But don’t worry, you’ll never be able to borrow more than the value of your property.

Once approved the lender will deposit funds into your day-to-day bank account. You can choose to have the funds made available monthly, quarterly or even annually. You decide what works best for you.

The good news is you can use these funds for anything you like.

Most lenders have a ‘no negative equity’ clause. This means you’ll never owe more than the property is worth.

Some lenders will also offer ‘equity protection.’ This means you will always have an agreed minimum equity in your home.

Interest is charged based on the outstanding balance each month. Once the interest is added to the loan, you can choose to pay all of it, a portion or none at all. Any unpaid interest is simply added to the loan balance.

Cover Major Expenses

Need a new car? Does your roof need replacing, or do you want to renovate your bathroom? You can borrow to meet any of these one-off, major expenses.

A Holiday

Dreaming of Paris, Rome or around the world cruise? Once you have retired, you have all the time in the world. And now you can have the funds to fly or sail away on the adventure of a lifetime.

Debt Consolidation

If you’ve retired and still have a mortgage or other debts, such as personal loans or credit cards, you can consolidate your debts into a single senior’s loan.

Aged Care Costs

Should the time come, and you need to move into an aged care facility, it’s an emotional and stressful time for you and your family. And making major decisions, like selling the family home, is just another added stress.

A seniors loan allows you to use home equity to pay the accommodation bond, meaning you can move into aged care when you need to. Once settled and enjoying your new life and routine, you can sell your home. It's your home and now you can sell it on your terms.