Elderly borrowers, often with only Centerlink or superannuation pensions as income, but with substantial equity in their property can access "Seniors Type" loans.
These types of loans are available to assist with relocation costs and purchases, meet unforeseen expenses or even to help out family members for elderley borrowers.
They are available to borrowers who have reached the age of retirment, are in receipt of a pension of some type, and have bult up equity in their existing property.
These loans can be set up without the need for repayments and in single or joint names, enabling the the loan to be repaid on sale of the security property or on death of the last borrower. They are particularly helpful to borrowers who are looking to downsize their property, require access to funds to meet current or future expenses of themelves or family members, but have a limited income to service the remaining debt.
Due to the unique nature of these loans we strongly recommend that borrowers seek full financial advice before entering into a facility of this type.
Features of this type of borrowing include:
- End Loans - After settlement of the existing and proposed purchased property, a debt to the bank still remains
- No End Loans - All debts will be cleared on sale of the existing property
As the borrower may have limited access to funds to meet repayments the debt will often continue to grow after settlement, with repayments often not required until the death of the last borrower. It is therefore extremely important that all borrowers and proposed beneficiaries are aware of the structure of this type of loan.
Due to the unique nature of these loans we strongly recommend that borrowers seek full financial advice before entering into a facility of this type.
