Recently, we received an email from a member that is so important we are sharing it (with their permission) below.

‘I was concerned at the more vulnerable target market of this style of home equity marketing aimed at retirees.’

‘It revolves around the content and inference in an infomercial “interview” seen during a morning show.

‘While a business to "assist" retires with meeting debts–when banks won't meet their needs–it's promoting using the equity in the retiree's homes as the 'RIGHT way to fund your retirement'. Is it? To me, that is very scary! So the company will then own their home, or could they sell the company's equity?’

‘To unsuspecting retirees who are likely to LOSE the equity in the home - i.e. they won't own their home to sell, or sell to move possibly to a retirement or nursing facility, or to leave in their will to their family.’

Thank you so much to member Christine C. for sharing this with us.

While we’re not qualified financial experts, Moneysmart.gov.au have a thorough explanation of reverse mortgages and home equity release schemes. We recommend reading further to decide if a home equity release is right for you.

As moneysmart.gov.au says: ‘There is risk involved and a long-term financial impact. Get independent financial or legal advice before you go ahead.’

You can also read more about Services Australia’s Home Equity Access Scheme here.

Members, we encourage you to do your own thorough research before entering into anything like this.

Be safe!

 

[Dennis]

If they were the last thing on Earth I would not entertain a reverse Mortgage, I think there is only one side going to make a profit and it is not you.

 

[Macarj]

It's called living on the children inheritance

 

[Allan McCorquodale]

Recently, we received an email from a member that is so important we are sharing it (with their permission) below.

‘I was concerned at the more vulnerable target market of this style of home equity marketing aimed at retirees.’

‘It revolves around the content and inference in an infomercial “interview” seen during a morning show.

‘While a business to "assist" retires with meeting debts–when banks won't meet their needs–it's promoting using the equity in the retiree's homes as the 'RIGHT way to fund your retirement'. Is it? To me, that is very scary! So the company will then own their home, or could they sell the company's equity?’

‘To unsuspecting retirees who are likely to LOSE the equity in the home - i.e. they won't own their home to sell, or sell to move possibly to a retirement or nursing facility, or to leave in their will to their family.’

Thank you so much to member Christine C. for sharing this with us.

While we’re not qualified financial experts, Moneysmart.gov.au have a thorough explanation of reverse mortgages and home equity release schemes. We recommend reading further to decide if a home equity release is right for you.

As moneysmart.gov.au says: ‘There is risk involved and a long-term financial impact. Get independent financial or legal advice before you go ahead.’

You can also read more about Services Australia’s Home Equity Access Scheme here.

Members, we encourage you to do your own thorough research before entering into anything like this.

Be safe!

My father took out a reverse mortgage to buy a new car and go on a holiday through St George Bank. The interest rates were much higher than the bank was paying on savings. His loan that started at about $30,000 ended up at about $120,000 when he passed away.
Sorry to sound crass but if you know you only have a couple of years left it might be a good option.
If you plan on living for a long time the banks will suck you dry