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James Coyle
James has over 35 years experience in financial services with particular expertise in two of the key components of retirement finance - Superannuation and the Age Pension. He is passionate about providing the guidance and support that can help older Australians enjoy their best possible retirement. He lives in regional Victoria surrounded by dogs and chooks.
My villa in a Over 55 retirement village is a “Contract of Occupancy”.
I am asset rich and income poor
How do I go about a Reverse Mortgage if I don’t actually own the villa ?
I paid $380,000 seven years ago
The villa is now valued at around $750,000
I’m trying to live on the pension which is incredibly difficult with the cost of living today
A lot of retirees live in these Over 55 Retirement villages which in turn frees up stand alone homes for young families
I would like to be able to access some of the worth that my villa has accumulated to make the rest of my life a little more comfortable and stress free
Thank you for the information it was very timely as my wife and I have just purchased our retirement home in regional NSW. We will need one of these products to pay out the existing mortgage when we move in in about three years time.
Very useful info. Thanks. I intend to use your services when i retire next year.
Mike.
I would be interested to know if any of the products mentioned in the article can be accessed in a regional area, in particular Marysville Vic.
Hi Gail. These products are generally available in regional areas. Some lenders may however have different lending provisions just as they do for traditional mortgages e.g. some don’t lend on rural land. There are no regional restrictions on the Government’s pension loans scheme. You can find out more about the Government Pension Loan Scheme here.
Great info. I am interested to know more details about how the reverse mortgage and fractional equity release work, how to go about it and who do you approach to establish these types of equity release options.
Hi. Thanks for your comment. There are a number of providers out there but one of the best places to start would be with the Government’s Pension Loan Scheme (PLS). Despite the name you don’t need to be on the Age Pension to receive this. You can find out more about the PLS here. Once you have looked at the Government Scheme you could then compare it with some of the private providers to see what best suits your circumstances.
My husband and I are in receipt of a full couple’s Age pension. We are considering a Reverse mortgage to help meeting future expenses like purchasing a car and doing some home renovations. We own our home outright which is worth about $700K to $750K
My question is in regards of how it would affect our Age pension income if we proceed with this option.
Thank you.
Hi Ruth. It all depends – that isn’t really helpful however there are a number of things to consider.
If the money is taken as a lump sum and invested or left in you bank account then it will be assessable as an asset. On the other hand if the money is taken as a regular payment and used to pay bills (including renovation bills) and generally spent quickly then it is unlikely to be assessable and shouldn’t affect your age pension.