Everyone's looking forward to the retirement because they'll finally be able to do everything they ever dreamed of but didn't really had time for while they were working. Sure, looks good on paper, right, but in reality, it's not that joyful. Lots of seniors struggle with everyday life and getting their bills paid. Practically nothing's left of their pension checks to be used for something more fun.
That's why many senior citizens are looking for alternative income. Many continue to work until it is possible, but no one can work forever. If you're having same or similar problems then you should start thinking about the reverse mortgage plan. The reverse mortgage plan is practically a bank loan but without the negative sides of the standard loans. You probably know how hard it is to get a loan if you're a senior anyway, so this is the perfect solution for both the banks and the seniors.
How does it work? The first condition for the loaner is to have over 60 years. Some banks prefer 65, some 63, but you must be at least 60. The second one is to have a property on your name. The best option is to have a house - houses are most valuable and you'll get the best deal out of it. If you agree to get this kind of loan from the bank, you sign a deal in which you transfer an equity of the shares of your house to the bank. You basically place a mortgage on your house, but the bank can't take it away until you sell the house or you pass away.
That's it. You're not obligated to return a dime until you're alive. No need for worries if you have enough money or anything. You can make a special deal to get a fixed amount of money each month instead of getting a lump sum too. Some like the plan because of the chance to receive a huge amount of money and chase their dreams, and some like it because it's the only way to survive each month. Whatever your choice is, you don't need to return anything.
However, the banks' interest will become higher over the years. The bank will own a larger equity of the shares as time passes. So, if you get the loan and live 30 more years, the bank will get a larger share than if you live 20 years. Same goes if you decide to sell. The good part in this is that the Australian Government regulates this part of the terms so the bank can never get more than the value of the house.
The reverse mortgage plan is excellent for all seniors because it offers money to support and in return, you don't need to do anything. It's the perfect way to spend the senior days in style and with grace.