Tap Into Bendigo Bank's Retirement Lifestyle Income

If your house was a giant piggy bank, imagine how many thousands of gold coins it would contain. Wouldn't it be great to release the equity in your house and tap into that wealth of accumulated funds to support you in your retirement?

With the rising cost of healthcare and general living expenses, and a decreased ability to rely on government assistance, many Baby Boomers are looking to reverse mortgages, such as Bendigo Bank's Retirement Lifestyle Income, to fund their retirement lifestyle.

Also known as Spending the Kids Inheritance or SKI-ing, reverse mortgage products such as the Bendigo Retirement Lifestyle Income enable retirees to release the equity in their homes to fund a standard of living that would be otherwise out of reach.

Bendigo Bank offer this product as a monthly payment at a fixed interest rate over a five year term to supplement savings and retirement income, with the option of an initial lump-sum payment. When considering applying for a product like Retirement Lifestyle Income, it is a good idea to first check with Centrelink to find out whether the added income will impact on any pensions or payment you may receive from them.

Compared to other reverse mortgages on the market, Bendigo's Retirement Lifestyle Income offers a relatively low Loan to Valuation Rate (LVR), starting at 11% for 65 to 69 year olds, which gradually increases in five-year age bracket increments, up to a maximum loan of $500,000 or 40% of the property's value for customers 85 and over.

Retirees' houses are likely to be their biggest asset, but to be eligible for Bendigo Bank's Retirement Lifestyle Income, applicants also need to have other assets to the value of the loan amount. These assets can include superannuation, investment property, savings, life insurance policies, allocated pensions, shares, motor vehicles or even valuable collections.

During the five-year loan term of a Bendigo Retirement Lifestyle Income, no repayments are required. At the end of the five-year term, you can pay off the loan amount in full, rollover to another reverse mortgage product (Bendigo obviously push for their Homesafe Equity Release product), or restructure your financial situation.

If you are thinking about taking out a reverse mortgage on your home, you may wish to discuss your decision with your family and benefactors of your will before making a commitment, as the reverse mortgage will affect what you leave behind in your estate. Then explore all of the options available to find the best financial solution for your retirement lifestyle.

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