What is a Senior Reverse Mortgage And is it Good?
Getting close to the age of retirement pops up many questions. One of them is how the person getting retired will continue their life and will they have enough money to have the life they want. Some people simply like to continue living a good life and they don't have the money, and some like to chase their dreams and live the life they ever dreamed of. Whichever the choice they make, they need more money than the regular pension they receive each and every month.
In Australia, there is a way for a senior citizen to get more money when they retire even though the banks won't give them a standard loan. It is the senior reverse mortgage program that is suitable for every senior that owns a property.
So what is a senior reverse mortgage? It is the best and easiest way for older people to get a lump sum or a higher amount of money every month. It works in a very simple way. The person that is asking for this kind of loan is obligated to give an equity of the shares of the property they own to the bank. The bank places a mortgage on the equity and gives the money to the owner of the house.
That is basically it. The person asking for a loan gets a large sum of money without the obligation to return a cent until the rest of their life or until they decide to sell the property that has a mortgage. On the other side, banks won't get their share until the senior citizen passes away or sells the house. Another good part is that even if the person that asked for the money dies, the bank won't ask for the loan back until people living on the property are still alive. Only after it is sold, the bank will get their share. Some might think that this can go on forever and the sum might exceed the loan, but the Australian Government made a regulation stating that the sum can never exceed the value of the property.
People usually ask for this kind of loan because they are not satisfied with the money they get as pension every month. Some like to finally live large after they worked their whole life - maybe travel the world, or move to a more exotic place somewhere else. Others can't accept the fact that they won't work anymore and decide to get a loan and invest the money in a larger business and make even more money.
Whatever the reason is, senior reverse mortgage program is probably the best way for senior citizens to continue being an important part of the society. With this, seniors have the chance to get more money on their account and live their life as they always dreamed of but never had the chance because of the fact they had to dedicate their lives to work.