In Everyday money on Sunday 29th May, 2022

Clearing the deck for retirement : getting your affairs in order

May 29, 2022
You should be looking forward to your well-earned retirement instead of worrying about your financial future. Image source: Getty

Ask many of the experts, and they’ll say to enjoy a financially secure retirement you should aim to own your home, be clear of debt, and have a chunk of money in superannuation.

For many of us that seems like an impossible task, particularly if that retirement date is just a few years away.

You’ve worked hard all your life but might be still paying down a mortgage. If you take money from super to pay off that mortgage when you retire, will there be enough left to live on?

At a stage in life when they should be looking forward to retirement, instead, many Aussies are worrying about their financial future.

Retirement roadblocks

Switching to a home loan with a lower interest rate can help you pay off the mortgage sooner. But once you reach age 55, chances are you’ll struggle to get a good deal from the major banks.

Plus, you might have cut back your working hours and be earning less. If that’s the case, meeting mortgage payments as well as building your super balance can be a struggle.

You could always sell your house to access the capital you’ve built up over a lifetime. But if you want to keep living in the home you love, that’s not really an option.

Fortunately, there’s a new Australian company that can help – Boomer Home Loans was established for Aussies approaching retirement, or those already in retirement. With a range of flexible lending products specifically designed for over 55s, Boomer can help you stop worrying, and start living.

55-years-old, and the bank says ‘no’

Jayne has been with her current lender for years, but it seems loyalty doesn’t count for much – she was paying a higher interest rate than the rate offered to new customers. She phoned around trying to get a better deal, but couldn’t get a loan approved.

That’s because the banks want assurances that the loan can be fully repaid by retirement age, or earlier if Jayne stops working.

How Boomer can help

Because its products are specifically designed for over-55s, Boomer can help Jayne with a range of flexible options.

She could refinance with Boomer at a more competitive interest rate with lower repayments, meaning she can enjoy a more comfortable lifestyle now. Over time, she could use any surplus funds to reduce the loan balance, saving more interest.

When Jayne retires, any outstanding loan balance could be converted to a Boomer reverse mortgage where she doesn’t have to make any further regular repayments. As an alternative, she could use some of her super to pay out her loan, and use a Boomer reverse mortgage to top up her income.

Because Boomer’s loans are flexible, if Jayne’s needs change, her loan can change too. Should she decide to retire early, Boomer’s Australian-based customer care team will help her find the best way to enjoy a comfortable retirement.

What’s a reverse mortgage?

It’s a way of accessing some of the capital locked up in your home which you’ve saved over a working life (how much you can borrow depends on your age and the value of your home). A reverse mortgage can help you generate retirement income or refinance debt at retirement, without the need to make any ongoing loan payments.

You retain ownership of your home and keep living in it for as long as you wish. The amount borrowed, plus accumulated interest, is repaid when the home is sold in the future.

You’re not locked in, either. You can choose to make repayments which will save interest, or pay off the loan in full at any time.

A clear path to retirement

If you’re coming up to retirement and want to ditch the debt before you hang up your boots you’re not alone – and you’ll probably find it tough to negotiate a good deal with one of the banks.

That’s why Boomer Clear was developed. Boomer Clear is a traditional-style home loan specifically designed to help over 55s refinance and clear their mortgage debt before retirement.

With fast approval times and competitive rates (currently 2.95% variable / comparison rate 3.0%), refinancing with Boomer Clear can help you spend less time worrying about money, and more time doing the things you enjoy.

Take the pressure off

Do you ever think you’ll need to keep working forever? With house prices (and mortgage levels) still at record highs, it’s not surprising that a growing number of Australians still have a mortgage when they retire.

Boomer Switch can take some of the pressure off. It’s an innovative loan with a competitive interest rate that doesn’t need to be fully repaid by the time you retire. That way, you can retire when it suits you, not when it suits the bank.

With Boomer Switch you can refinance your current home loan while you’re still working, and switch to a reverse mortgage when you retire.

What’s my next step?

The team at Boomer Home Loans has decades of experience across banking, accounting, business and financial services. Whether you want to clear your debts before you retire or are looking to access the savings in your home to provide a better retirement lifestyle, you’re in safe hands with Boomer.

You can make a start by calling the friendly Australian-based call centres on 1800 552 100, or visiting boomerhomeloans.com.au

Information in this article is general only and does not take into account your personal circumstances.  You should seek professional advice before making any financial decision.  All Boomer loans are subject to eligibility criteria and have their own fees, interest rates, terms and conditions which change from time to time. Boomer Home Loans Pty Ltd Australian Credit Licence 532798.

There’s a new Sun Rising for Aussies over 55.

Created by Australians for Australians, Boomer Home Loans is the first specialist lender for Aussies over 55. And we’re here to listen and help you make the most of what you’ve got so you can continue to live well now and throughout your retirement years.

Find out more

Will you retire with a mortgage? Are you concerned about making repayments?

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