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Home Equity Release / Reverse
Mortgage
There is great pride in owning and living in a home
that over the years you have worked for. With a history of dependable property
growth in Australia, it is likely your home has grown significantly in value to
become your greatest asset.
Support your retirement
You may find the investments you relied on to support your retirement are not
covering the ever-increasing cost of living, let alone life’s luxuries.
Consider that the equity in your home could help provide for your future
finances without having to move.
Overview of Benefits
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Use the money for what ever personal or investment purpose you wish.
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Title remains in the home owner's name.
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Money can be received in a lump sum, monthly payments or both.
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You are not required to live in the home.
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No repayments required until title is transferred.
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Protection available if you wish to leave an inheritance.
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Independent legal advice required.
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Our no negative equity pledge means if the sale value of your property does not
cover the outstanding loan balance we will not ask you or your estate to make up
the difference.
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Choice of variable and fixed interest rate options.
Am I Eligible?
You must meet the following:
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Be at least 60 years of age.
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In the case of a couple, both must be 60 years or over and both own the
property.
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Be a homeowner with equity in your home. While you may qualify even if you
have an outstanding mortgage, you will be required to pay out the mortgage with
the funds received from the equity release loan prior to receiving the balance
of the money.
FAQ
Q. Will my home have to be sold to repay the loan?
A. No. While the debt must be repaid when the home is sold, transferred, or
within 10 months of the property passing to your estate, and assuming you are
not in default, you or your estate are free to repay the loan from any source.
Q. Do I still own my property after I have taken out a Home Equity
Release Loan?
A. Yes, while we will register a first mortgage over the property, your home
remains in your name until it is sold, when the loan and the interest plus fees
and costs must be paid. After repaying the loan balance, any surplus is paid to
either you or your estate.
Q. What reactions can be expected from our children when taking out an equity
release loan?
A. Because every situation is different we encourage you to discuss your
intention of entering a equity release loan with your family. In many cases
children are extremely supportive of the home equity release concept as they
welcome the financial freedom and independence it offers their parents while
still retaining ownership of the family home.
Q. How much can I borrow?
A. The amount you can borrow depends on your personal circumstances, such as
your age and the value of your property. These two factors will enable us to
assess the amount you may borrow. By way of example where the youngest applicant
is 72 years old they would be able to borrow up to 25% of the formal value of
their property.
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