Reverse mortgage alternative
Most would be familiar with the reverse mortgage on the home to provide an up-front lump sum with accumulating interest charges and principal to be repaid on sale of the property.
A viable alternative to the reverse mortgage, if an immediate lump sum is not required, could be the government’s pension loan scheme which may be accessed through Centrelink. For those over age pension age a fortnightly payment of up to 150% of the full age pension may be received as financial support at an interest rate presently 4.5%. The payments, together with interest and charges, would be repayable on sale of the secured property as for reverse mortgages!
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