Fixed vs variable rates retirement planning guide for Melbourne retirees

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Downsizing Mortgage Australia: What Retirees Need to Know

Why consider a smaller home in retirement?

For many Melbourne retirees, selling the big family property and moving to a more compact dwelling can unlock fresh possibilities. Fewer rooms mean lower utility bills, reduced upkeep, and extra time for the grandkids.

The sale proceeds may clear any outstanding loan and leave a healthy nest egg.

Mortgage implications when downsizing in Australia

Before listing, speak with a broker who understands the nuance of financing a smaller property. You might:

• Use surplus equity to pay out your current mortgage.
• Opt for a shorter loan term to stay debt free sooner.
• Tap the government Downsizer Contribution scheme to boost super.

Increased cash flow can improve lifestyle choices like travel or medical care.

How La Trobe Financials can help finance a smaller home in Australia

1. We review your existing loan and calculate anticipated sale proceeds.
2. We source competitive products tailored to post work income streams.
3. We streamline settlement dates so you move once, not twice.

Case study

Jim and Carol sold their suburban four bed for 1.2 million and bought a two bed unit for 750 thousand. After clearing their mortgage, they placed 250 thousand in super and kept a cash buffer. Their monthly expenses fell by 30 percent.

Start planning early to avoid bridging finance stress.

Frequently Asked Questions

What are the benefits of downsizing your home in Australia?

You gain extra cash, lower ongoing costs, and a home that suits current mobility needs.

Are there mortgage implications when downsizing in Australia?

You may face break costs on fixed loans, stamp duty on the new property, and different borrowing capacity once you retire.

Any downsizing tips for Australian homeowners?

Secure pre approval before you list, declutter well in advance, and compare loans that allow flexible redraw.

Ready to explore your own downsizing journey, speak with a La Trobe Financials specialist today.

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