Equity Release - life style cash advances for our parents (Reverse Mortgages)

Many of our parents, especially those in their 70’s and 80’s, are finding themselves ASSET RICH and CASH POOR. In other words they have a limited amount of expendable cash or income, however live in a property which is both owned outright and of substantial value.

These parents are very likely to face a reduced standard of living, as they consider that their available cash reserves and or incomes are insufficient to last them well into their 80’s and beyond and still cover the cost of a new car or the next holiday, let alone dinner up at the club.

This dilemma is often frustrating to extended family members who want to see their parents enjoy a quality retirement and not a “self imposed” decrease in the standard of living and creature comforts, less or less expensive holidays, all in an attempt to ensure that their remaining CASH outlasts them.

So often these circumstances exist despite our parents having a significant amount of wealth tied up in a home which they understandably do not want to leave or sell.

There are some excellent products on the market which will access equity in these homes, providing the parents with easy access to the additional cash can be immediately or progressively drawn down and any debt created simply have interest accrue and as such not require any monthly servicing.

Lets face it, the majority of debt created in this area will be relatively minor in relation to the overall property value (your parents will see to that). We think the biggest hurdle will be you trying to convince your parents that they don’t need to leave a debt free home to their kids and that you would much prefer they enjoy their retirement and any debt they may incur would still result in plenty still left over as their home will double in value over the next 10 years anyway (if the last 50 years in Sydney is anything to go by)

These Equity Release products are not like other loans in that they do not require a regular income. The amount of cash available is based on the value of the home and to be eligible, your parents need to be over 60 years of age or older. They can choose to have their loan linked to a variable interest rate or you can fix interest rate on your loan or perhaps a combination of both.

It is thier choice on how they wish to use the money as they would have the financial freedom to do any or all of the following:

Improve the quality of their lifestyle
Take a holiday
Buy a new car
consolidate other loans such as credit card debts etc
Renovate their home
Assist family members

How we do it:

Finlease can organise an equity release loan if your parents where they are an Australian resident, own their own home or an investment property and the youngest borrower of at least 60 years old. We listen and understand your parents circumstances so that your parents are provided with a loan that is specifically suitable to their needs.

Customer Benefits:

Does not effect your parents social security or Medicare
The drawings are Tax free as not counted as income on the homeowners taxes
Your parents retain full ownership of the property until it is sold and retain all rights as the owner until that time.
Your parents can use the funds for any worthwhile purpose
Your parents are not required to make monthly repayments during the life of the plan.
Your parents can choose the amount they wish to draw

How to apply:

You can simply call Jackie Mitchell on 02 9959 5488 and have a chat about this area.