
Originally Posted by
pete376403
Think more about the money thing - A reverse annuity mortgage (heartland bank) would free up quite large amounts of cash and if you are not that concerned about leaving it all to the kids, why not?
Like many other kiwis I thought these were the go to option. However personal experience of family friend and media stories mean read the fine print and do your maths. It’s not quite as simple as it appears.
Just like a normal mortgage you still own the house, so your paying insurance, rates and upkeep etc.
The bank charges interest on the money they are paying out to you just like how a normal mortgage clocks up interest. If you end up living longer than expected (who’d have thought that was a problem)or the property value drops significantly you’re in a bind.
Some good lenders will limit how much the will reverse lend to help you avoid this.
I was late to the saving game so I’m not looking forward to it all but 15-20 years to play catchup.
Every great cause begins as a movement, becomes a business, and eventually degenerates into a racket - Eric Hoffer
Bookmarks