Thorners Home Equity Release Services
Thorners offer the Sentinel Lifetime Loan for clients requiring a Home Equity Release product as it is an uncomplicated proven product that has been in the market place since 2004. With the Sentinel Lifetime Loan you can take some of the equity out of your home without having to sell, helping you to maintain your financial independence in retirement.
Applications are based on the owner/occupiers age and the current market value of the property. The Sentinel Lifetime Loan is designed to last you the rest of your life and will usually only be repaid when you die or move into long term care, although you have the freedom to repay a variable rate loan at any time, without penalty.
Unlike traditional loans there are no monthly repayments – in fact there is nothing to pay until you decide to sell the house, no longer reside permanentlyin the house or upon your death.
- The decision to use a Home Equity Release product is often not an easy choice and Thorners will work with you and your family to ensure you all understand the options and long term financial implications.
- It may be of comfort to know that there are many people sitting on the fence and keeping it as their final financial option. Those that have taken advantage of the new found financial freedom have made sensible choices and there are strong trends coming through on the use of the funds. These include:
- Over 50% of the funds advanced are used for home maintenance e.g. painting, a new roof, repairs to the bathroom, replacing worn carpet, upgrading the insulation and installing low maintenance landscaping. These all go towards increasing the value and sale ability of a home
- Around 20% is used to clear existing debt that is becoming unaffordable on a pensioners income. This can include refinancing an existing mortgage (subject to being able to totally refinance the existing debt), clearing credit cards and HP or even paying for a spouse’s funeral.
- The other 30% is spread over lifestyle choices being things like replacing an unreliable vehicle, essential surgery where a public hospital wait is becoming agonising, dentistry and new glasses through to that last trip back overseas to see the grandchildren.
You choose the purpose for the loan!
Key points to remember with the Sentinel Lifetime Loan are:
- You continue to own your home and therefore get any capital appreciation;
- You are free to sell the property at any time;
- There is a comprehensive Loan Repayment Guarantee in place;
- There are no early repayment charges on variable rate loans;
- The lending criteria is simple and easy to understand; and
- You are in control. You can manage your loan and access funds as and when you need them.
Clients considering Home Equity Release should also check with their local District Council to see if they are eligible for Rates relief through the Rates Rebate Scheme www.ratesrebates.govt.nz
Thorners offer totally obligation free discussions which will include the provision of long term financial projections – you will not be pressured into signing an application!
