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Helping you access the hidden cash in your property
Did you know borrowing $150,000 on a reverse mortgage can end up costing you over $300,000?*
CALL: 1300 812 008
Helping you access the hidden cash in your property
Reverse Mortgage PROS and CONS
*Assumes fixed interest of 7% compounded monthly with no fees applying and no repayments being made over the 10-year loan period
Did you know borrowing $150,000 on a reverse mortgage can end up costing you over $300,000?*
Reverse Mortgage Trap – PROS and CONS
*Assumes fixed interest of 7% compounded monthly with no fees applying and no repayments being made over the 10-year loan period
A reverse mortgage allows you to borrow money using equity in your home as security. The loan must be repaid in full if you sell your home, die or if you move into aged care.
Over time the amount of money you owe the lender will increase the longer you have the loan. You are charged interest on your interest. The more the interest compounds, the bigger the amount of money you will have to pay.
Call Cash For Your Backyard today on 1300 812 008 for a smarter alternative to reverse mortgage.
REVERSE MORTGAGE OPTION V’s CASH FOR YOUR BACKYARD OPTION
REVERSE MORTGAGE
The loan balance owed to bank increases over time as interest on the loan and fees accumulate
Cash For Your Backyard
No Loans
No Interest
No Fees
REVERSE MORTGAGE
Leaving your heirs and family with a big mortgage to pay. This usually means the family home cannot be retained by the heirs and will need to be sold to cover accumulated loans and interest
Cash For Your Backyard
Leaving your heirs and family with a mortgage free property. They can choose to keep the property or sell with no loans or interest to pay
REVERSE MORTGAGE
Ongoing fees and charges
Cash For Your Backyard
No ongoing fees and charges
REVERSE MORTGAGE
Compound interest charged
Cash For Your Backyard
No Loans
REVERSE MORTGAGE
Committing a percentage of your property future growth to bank
Cash For Your Backyard
You fully own any further growth of the property
REVERSE MORTGAGE
Mortgage secured by your title
Cash For Your Backyard
Retain 100% ownership of your property title
REVERSE MORTGAGE
Legal advice required
Cash For Your Backyard
Legal advice required
REVERSE MORTGAGE
Cash available
Cash For Your Backyard
Cash available
*Cash For Your Backyard does not offer financial advice and recommends that you seek this elsewhere.
Reverse Mortgage Home scheme
2021 Property Value
$1,000,000*
Example of current property value
Borrow via reverse mortgage $150,000*
Interest $300,000*
Assumes a fixed compound interest of 7% and no repayments made over a 10-year period
TOTAL owed to lender
$450,000*
2031 Anticipated Property Value
$2,000,000*
Anticipated Property Value in 2031
$2,000,000*
Less owed to lender
$450,000*
$1,550,000*
Plus cash accessed via mortgage in 2021
$150,000*
Total value accessed from your property after Reverse Mortgage
$1,700,000*
Selling your backyard instead of doing a reverse mortgage can leave you $400,000 to $500,000 better off in your pocket, see example 2.
Cash For your backyard
versus
Reverse Mortgage Home scheme
2021 Property Value
$1,000,000*
Example of current property value
2021 Property Value
after selling backyard
$850,000*
Access $400,000* from sale of backyard
No loan or interest
Retain 100% title ownership of home on reduced land portion
2031 Anticipated Property Value
$1,700,000*
Anticipated Property Value in 2031
$1,700,000*
Cash accessed from selling backyard in 2021 to Cash For Your Backyard
$400,000*
Total value retained and accessed from your property after selling your backyard to Cash For Your Backyard
$2,100,000*
The example above shows how by selling your backyard you can end up with $400,000 to $500,000 more in your hand.
The above example shows how selling your backyard and staying in your home while accessing the cash can offer many benefits.
You can downsize without selling or buying fees such as stamp duty and conveyancing when purchasing a smaller property to live in.
The option of selling your backyard versus borrowing a reverse mortgage can have many other benefits as discussed earlier, however, the biggest benefit is usually the bigger cash injection.
*Values are examples only and may vary from property to property.
*Example is over a 10-year period and is dependent on current market values.
*Cash For Your Backyard does not offer financial advice and recommends that you seek this elsewhere.