Retirement Living Loans
Access funding to bridge the gap to your next stage of life without the stress of traditional bank finance.
ASCF can provide retirement living loans to help retirees downsize from their existing family home into a more sustainable living option as part of a community title or land lease property.
Maintaining a large family home or property can become overwhelming for those nearing retirement, yet the process of downsizing often presents significant financing hurdles. Traditional lenders frequently struggle to fund these transitions due to the title restrictions associated with the property being purchased.
ASCF’s retirement living loans can provide a practical alternative by securing the loan against the equity in your existing home and the property being purchased (where the management agreement allows a mortgage to be taken). Structuring the loan with fully capitalised interest, there are no monthly repayments required during the transition period. Additionally, we assess the loan based on a clear, verified exit strategy—typically the sale of your existing property—giving borrowers the flexibility and funds to secure their new retirement home before their current one sells.
Below is an example of how ASCF assisted a previous borrower with a retirement living loan:
What is a Retirement Living Loans?
Benefit Title
Benefit Description
Case Study
ASCF provided a tailored funding solution for a retiree who was unable to obtain financing from traditional lenders due to age and servicing requirements.
Exit
The borrower will repay the loan from the sale of his family home, and ASCF will rebate any unused interest should the loan not run through to the expiry date.
Solution
Our valuation confirmed an LVR of 53.22% against the existing property, and we provided a 6-month facility for $750,000, with interest being retained for the term. The customer was able to settle on the purchase of his new home in the lifestyle community until he sells and settles his family home of 45 years.
Problem
A retiree approached us directly seeking funding to purchase a home in a lifestyle community, pending the sale of his existing unencumbered home. He was unable to source funding for this purpose from traditional lenders due to his age and his inability to evidence his capacity to service the debt.