How to use a Reverse Mortgage to pay off debt

14 April 2017

A decade ago, a Reverse Mortgage was something many of us had never heard of. Today, Reverse Mortgages have become a much more popular financial product for Australian seniors and many of them use a Reverse Mortgage to pay off debt.

Because of rising ageing population, increasing property prices, and growing amount of indebtedness in Australia (albeit with much greater equity), more and more people are using Reverse Mortgages to help them live a better retirement. The recent changes to the aged pension asset test and increased volatility in share markets has also contributed to this new wave of interest in Reverse Mortgages.

A Reverse Mortgage can help you in many ways. With a Reverse Mortgage, you borrow money using the equity in your home. You can use the funds for any purpose you wish, but the most popular reasons for taking a Reverse Mortgage include home renovations and maintenance, upgrading a motor vehicle, travel, healthcare, paying for aged care, and consolidating debt.

A survey conducted by revealed that senior Australians today retire with more debt than their parents did at the same time of their lives. Many people believe they will be debt-free when they retire, but the reality is many Australians still carry a debt into retirement. Fortunately, increasing house prices and growth in Superannuation means that while seniors may have more debt they also tend to have more equity (i.e. net assets).

Managing credit card bills, a mortgage or other personal debts on top of monthly expenses can be tough for older Australians. The stress and headache of paying these can rob you of a peaceful and worry-free retirement.

The good news is—Heartland Seniors Finance can offer a solution for you. Using a Reverse Mortgage to pay off debt is a logical approach in dealing with your debts.

A Reverse Mortgage allows you to pay your debts in a lump sum, without worrying for repaying the loan or dealing with monthly repayments and helps you live the retirement you deserve.  In addition, the interest rate on a Heartland Reverse Mortgage is typically much lower than a credit card or a personal loan. A Reverse Mortgage is only paid when you move into an aged care, sell your home, or pass away, however additional repayments can be made whenever you wish without penalty.

Heartland Seniors Finance is Australia’s leading Reverse Mortgage provider, and has assisted thousands of people aged 60 and over release equity from their home. Heartland is also proud to be Canstar’s 2017 Reverse Mortgage Provider of the Year, and to have won the Money Magazine Best Reverse Mortgage for seven consecutive years.

A market leading product and personal service makes Heartland Seniors Finance the Reverse Mortgage lender of choice for many Australian seniors.

Please feel free to contact us and talk to one of our Reverse Mortgage specialists to see if we could help you to live a better retirement.


Information provided is accurate as at 14 April 2017 and may change from time to time