That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
Unlocking Home Equity In Your 70s
Ever felt the sting of being asset rich and cash poor while your best years for adventure are right now? We share the candid truth about turning home equity into a tool for a fuller life, and we don’t gloss over the trade-offs. From the emotional weight of “we must leave the house to the kids” to the practical difference between an active 70s and a slower 80s, we walk through the choices that matter and the safeguards that keep you protected.
James, our in-house expert on reverse mortgages, breaks down how these loans actually work in New Zealand, what protections exist, and why purpose-driven drawdowns beat vague spending every time. We talk through real-life use cases that resonate: funding a surgery that restores mobility, making ageing-in-place upgrades like better insulation and safer bathrooms, or finally taking that bucket-list trip with family. Along the way, we address the big fears—going “back into debt,” compounding interest, and inheritance expectations—and replace them with a clear framework: strong why, specific plan, independent legal advice, reputable provider.
If you’re living on a pension in a beautiful home and wondering how to unlock life without selling, this conversation lays out the path with plain language and practical steps. You’ll learn how to map your budget, set staged drawdowns, stress test scenarios, and talk openly with your kids about legacy versus living well now. The goal isn’t to push a product; it’s to give you confidence and options at the exact time they matter most.
If this resonated, follow the show, share it with someone who’s asset rich and cash poor, and leave a review so more Kiwis can find practical guidance. And if you want tailored advice, reach out—James is happy to talk through whether a reverse mortgage is right for you.
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Are you asset rich but cash poor? Then listen up. This is an episode for you or anyone else that you know in the same position. I've got James in the house. Hello, James.
SPEAKER_01:Hello.
SPEAKER_00:Oh, okay. We haven't had hello yet. Very simple. Cool bananas. James, what are we worried about for our elderly population?
SPEAKER_01:So I guess we get to meet a lot of really interesting people. And you sit down with them and and you go, okay, and they might be in their mid-70s and things like that. They've got a beautiful house, live in a great area, but they're living off the pension. So this it's just so limiting. Yeah. And and they're really stuck because they want they want to live this life, and they're still in your 70s. Usually you're still young enough to do it.
SPEAKER_00:And a lot of 70-year-olds are really fit. Yep. And this is the time when they're finally not working, they've got new hobbies, like listening at your mom's funeral. You know, she was really into her golf.
SPEAKER_01:Golf and bowling and mahjong.
SPEAKER_00:Yeah. And they're like, they want to travel and they want to go hang out with their friends and drink wine and eat fine food.
SPEAKER_01:It does sound pretty good.
SPEAKER_00:You know, so this is the time for them to be living the best life.
SPEAKER_01:Yeah.
SPEAKER_00:But can they, if they don't have the cash and the pension alone is not enough.
SPEAKER_01:It's not. So and the key thing that I've learned recently is there is a big difference between being in your 70s and being in, say, your mid 80s and what you can do. This is this is just general. Yeah. So because I just noticed it because I saw a lot of my parents' friends at my dad's 70, and then I saw them uh more recently in their early 80s. So they're now not able to do that sort of stuff. Whereas in their 70s, you've really you've got options, I think, generally speaking, in terms of your health and your well-being and and your mobility. So anyway, so you sit down and you talk to people and they want to do all these things, but they're really they're torn, they're split because there's a feeling what's the word? It might be a cultural thing that they need to leave their estate intact for the generation to come.
SPEAKER_00:And we've covered that in one of our other episodes around the wealth passing on that wealth and not really spending it on themselves.
SPEAKER_01:Yeah. And they just and all my my my parents and my parents' friends feel this way. They've got all they they want to do all this stuff, but then they're like, oh, but this is our responsibility is to leave it to the kids. Yeah. And in a lot of the situations, the kids are even more well off than what the parents are. Do you know what I mean? So it's it's trying to find that balance whether this product, this reverse mortgage product, which is where retirees can use a portion of their equity in their property to spend on their lifestyle or whatever they want to spend it on. So it's get it getting the balance right.
SPEAKER_00:Yeah.
SPEAKER_01:So that that's that's the conversation that we're having with a lot of people, and I they want to do it. They want to do it. They just people just need to know all the all the pros and cons. Yeah. You know, it's better if you know exactly what you want to spend the money on rather than being wishy-washy about it.
SPEAKER_00:Yeah.
SPEAKER_01:You know, and having a clear amount that you need to draw down, want to draw down for.
SPEAKER_00:I also think it's psychological, to be honest. I think it's really hard for them to get to a stage in life where they're finally mortgage-free, debt-free, and they've got all these assets, and going back a step and getting another mortgage on the house might feel like a step back, and psychologically at place hard on your mind going, oof, I don't want to be in the same position again where I was, you know, 20 years ago. So I think it's figuring it, figuring it out with them. But as you say, that why is if that why is strong enough, then that's an okay decision. Because if your why is to release money from your house to get that surgery that you need, or to have that once-in-a-lifetime travel opportunity with your family to create those memories and experiences, or to help you out with renovations that you need on your house, then that why is strong enough to go back a step and get that deed. But if your why is only to really just span it all and not see the clear picture of how you're gonna come out of it, then of course we are against it.
SPEAKER_01:Yeah. Exactly. Exactly. And that that that's what makes the big difference, is it's just having that clear plan for what you're doing, and you know, uh legal representation is required for any of these sorts of products, so it's not like you're you're signing up to something without getting proper advice. So yeah, I th I think it's a w something worthwhile to look into for people that are in that position. Yeah. Um, there's there's a lot of good sort of policies around it. And providers that yeah, that that ensure that you're protected and stuff like that. So absolutely.
SPEAKER_00:Sounds good. Sorry, guys, on this note, my kids are banging at the door, the joys of school holidays. I think we've covered it quite nicely, but for those that have missed the episode, you and I have recorded in greater detail around the reverse mortgages and what does it look like? And as you've said in the past, it's not like it's some sort of lawn sharks that will, you know, charge you an arm and a leg for giving you 50k. Like there is a lot more reasonable providers out there and a more safeguarding around it.
SPEAKER_01:And you know, I can and you can just contact me and then I can really talk to you about it in a lot more detail before, you know, just to make sure that it's the right thing for you. Yeah. And that that's really been thought through and how it all works and that kind of stuff. So happy to please do contact me. I love talking to people about this kind of thing.
SPEAKER_00:So James is our in house expert now on reverse mortgages, helping out those that are asset rich and cash poor. And this wraps up an episode around this topic. Thank you. Bye.
