It’s important to maintain your home, however as the cost of living goes up, it can be difficult to pay for necessities, let alone carry out repairs or improvements on your home. Sometimes, the longer home repairs and maintenance are delayed, the higher the possibility of permanent damage to the property. This can, in turn, reduce the value of your home. You might also want to make changes for health reasons which could include fixing a roof, installing a chair lift or renovating your bathroom or kitchen.
A reverse mortgage could allow you to stay in your home and pay for improvements that could add value and ensure your comfort for the years ahead. This provides peace of mind, knowing you have access to equity in your home to make improvements without having to sell.
Day to day expenses
As time goes by, the cost of living goes up and you could find it difficult to make ends meet, let alone live comfortably. You may worry about switching the heater on in winter, and finding the money to pay for medical expenses or a car service can be tough. A reverse mortgage could help ease the squeeze.
A reverse mortgage could help supplement your income through a regular monthly advance. These additional funds may make budgeting for daily expenses a little easier - while also potentially allowing you to enjoy more of the opportunities life has to offer.
You should be able to enjoy a comfortable lifestyle and spend your time doing the things you enjoy later in life. No one wants to worry about debt and keeping up with repayments as they get older, but it is a sad fact that many with a limited income do.
With an interest rate that is often lower than credit cards or personal loans, a reverse mortgage could unlock equity in your home, allowing you to consolidate your debts without having to sell your home. No longer burdened by regular loan repayments, your cash flow should free up, giving you peace of mind.
Medical and healthcare
Quality of life is important. For many over 60, good healthcare plays a pivotal role in this regard. Healthcare comes at a cost though and medical procedures, prescriptions, home care and items such as hearing aids and eyeglasses can put pressure on your budget.
A reverse mortgage could help you cover important healthcare costs. You can choose to receive funds as a lump sum payment to cover the cost of surgery, have funds set aside for future needs in an express top up facility, or as a monthly payment to help cover regular healthcare costs.
Purchase a car
Whether it’s time to treat yourself to a new car, or you need a more reliable and cost-efficient vehicle, it’s likely a decision that you’ve spent a bit of time on. Understandably, many Kiwis over 60 may not want to spend their savings on a car but may find it difficult to secure a car loan to update an old vehicle. The upshot is that many may continue to drive older model vehicles that could be more difficult to operate and have lower safety ratings than new cars.
A reverse mortgage could allow you to access the wealth you have in your home to purchase a new car or fund much needed repairs and maintenance on your existing car. Unlike a standard mortgage, you don’t need to make regular repayments, which means you can get more out of life with a set of wheels you can trust.
Travel and holidays
Having worked hard your whole life, it’s only natural to want to enjoy the finer things in life. Life isn’t predictable though and despite your best intentions, you may not be able to cover everyday expenses and splash out on holidays. You could find yourself missing out on the travel you’ve always wanted to do.
With a reverse mortgage, you could access the funds you need to visit loved ones or book the bucket list adventure you’ve always dreamed of. The choice is yours.