Did you know that almost 25% of Heartland new customers used some of their reverse mortgage for travel and holidays?

Whether you’ve been dreaming of a bucket list escape, an Australian caravanning adventure or taking a trip to see the grandkids, finding the spare cash for a holiday can be difficult. This can be particularly difficult when there are more immediate priorities such as bills and medical expenses using up your day-to-day income.

You may think the only way to enjoy a holiday is to take out a credit card or personal loan. However, it can be tricky to keep up with the regular monthly repayments required for ongoing debt on a limited retirement income.

There is an alternative! Instead of taking out a traditional credit card or personal loan, you could be eligible to use the equity in your home to help fund your holiday plans using a Heartland Reverse Mortgage.

But what could this look like in practice, and will you be able to borrow the right amount to cover your needs?

Let’s look at an example from one of our customers, James*, who used part of his Heartland Reverse Mortgage to take a holiday.

James’s case study

James owns a property in Newcastle valued at $400,000.

At 81 years old, he applied for a Heartland Reverse Mortgage to cover a range of his retirement needs.

This included and upfront initial advance of $100,000. This amount was used for a variety of purposes including $15,000 for a holiday, $15,000 to purchase a car, $30,000 for home improvements, $20,000 for day-to-day expenses, and a further $20,000 for some outstanding debts he wished to consolidate to free up cashflow.

He also requested a regular monthly advance of $3,456 for 1 year, totalling $41,472.

The total loan amount requested was $141,472.

How much was he able to borrow?

81 (age) = 41% LVR (maximum potential loan)

41% (LVR) x 400,000 (home value) = $164,000

James was able to apply to borrow a total of $164,000.

As his application met the applicable credit criteria, Heartland was able to lend his requested funds of $141,472.

Taking out a Heartland Reverse Mortgage helped James to live a more comfortable retirement by covering a range of needs in retirement – including a well-deserved holiday.

Want to know more? Find out more about using a reverse mortgage for travel and holiday or request your free Reverse Mortgage Guide.

Ready to apply? You can now Apply Online, or request an Application Pack that provides everything you need to apply.

If you require any assistance, feel free to get in touch, we are here to help you.

*Names have been changed to protect the privacy of our customers.

Information provided is accurate as of 1 November 2023 and may change from time to time.