SENIORS FINANCE AUSTRALIA

Your Reverse Mortgage Specialists

Call: 1300 881 807

SENIORS
FINANCE
AUSTRALIA

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Questions & Answers

Frequently asked questions on Seniors Finance Australia Reverse Mortgage / Home Equity Release Loans

If you have any other queries after reading the following then please call us on – 1300 881 807.

What is a reverse mortgage /home equity release loan ?

It is a special type of loan that allows you to use the equity or assets value that you have built up in your home and to be able to turn this equity into cash to use for whatever reason you want – i.e. holiday, living expenses, new car, renovations, health costs.

Who can qualify ?

If you own your own home , holiday home or investment property with residential  zoning  and you are over 60 years of age then you would qualifier for a reverse mortgage – seniors home equity loan.

What happens to the Title of my home ?

The Title of you home will stay in your name.

Do I have to make any repayment on the loan ?

No, you do not have to make any repayments on the life of this – reverse mortgage loan.

Can I make voluntary payments ?

Yes, you can make voluntary repayment if you wish to do this on the reverse mortgage loan. You can pay the loan out early  whenever you wish to.

When does this reverse mortgage loan have to be repaid ?

It is a “lifetime loan”. The loan will be repaid when you choose to sell your home yourself, or when the last surviving borrower passes away.

How much can I borrow ?

In general terms – The amount you can borrow for the Reverse Mortgage loan depends on the age of the youngest borrow against the valuation of your property . The loan amount is a percentage on the value of the property and generally starts at age 60. The value of the property may increases over this period of time as well. Please call us on 1300 881807 and we can give your loan amount.

What if I have a mortgage on the property at the moment?

If the amount you presently owe on a mortgage is less than what you can borrow then this present mortgage would be paid out for you as part of the reverse mortgage – seniors finance loan.

How can I default on a reverse mortgage ?

As this is a “lifetime loan with no repayments” you may think how can I default ?

For example – It is part of the loan agreement that you keep insurance on the home and if you did not do this then it would mean the loan could go into default.

Will a reverse mortgage effect my pension ?

This will depend on your circumstances and what you require the money for or when you intend to use the money. In general terms, if you are on full pension and have little or no other income or assets and are requiring the money to say buy a car, do some renovation, go for a holiday, spend the money for personal reasons or benefit then it does not generally affect your pension but we do ask that you seek advice from the Centrelink on your personal situation when going into a reverse mortgage.

Why do I need a lawyer ?

It is a requirement that after the reverse mortgage loan is approved and the legal documents are issued for your reverse mortgage/equity release loan that you see your lawyer for independent legal advice so that they can explain to you what the documents are about, answer any legal questions on these documents that you may have so that you are comfortable and understand this mortgage agreement as this Reverse Mortgage is a lifetime loan.

What are the Rates?

Variable rate apply on the Reverse Mortgage – please ask for the current rate by calling 1300 881 807

Can I pay the Reverse Mortgage loan back ?

You can make voluntary partial or full repayment of the reverse mortgage seniors finance loan whenever you wish. Details for repayments are in the Legal documents.

What does a No Negative Equity Pledge mean ?

The No negative Equity Pledge ensures that you (or your estate) will not have to pay any shortfall difference between the sale price of your home and the outstanding balance owed when the home is sold. (see your contract)

If you kept borrowing as you aged and lived for a very long time and for some reason the loan was greater than the sale price of the property it means that you, or your estate never have to pay back more than the sale price of the property.

Can I have a “Flexible re-draw /or,  Cash Reserve ” put in place ?

Yes, you can have this option – this is where you can choose to take your maximum amount as your limit, and then draw down the amount that you require, when you require it. Interest is only charged on the amount that you actually use / have drawn down. Please ask how this will work for you. You can also have regular payments – monthly or quarterly or yearly.

I have my home on a Rural acres property, do you lend on this ?

Yes, you can have an equity release / reverse mortgage if this is your own home on  an acreage up to 12 acres, this also depends on postcode, this can be looked at on a “case by case” basis.

Security Property –  

In general the security property for a reverse mortgage is a house  with residential zoning.  Commercial zoning, business use and some postcodes are not acceptable.   Please send details and this can be looked into on a case by case basis.

The home that I live in is owned by my Family Trust / Company, can I have an equity release ?

The Reverse Mortgage can  be looked  at on a case by case basis  on the age of the Trustees or  Directors on the Title of  a residential property. Please call for 1300 881 807  for further details.

If I have a Reverse Mortgage loan now and in the future I need more money , can I do this ?

You maybe able to increase the loan amount depending on the age  of the parties on the Title and what the value of your property would be at that time in the future .

Do I need Legal Advice?

Once the loan is approved and the Legal Documents / Loan Agreement, Terms and Conditions are issued, you must see your solicitor or lawyer for advice and sign the legal documents, signatures to be witnessed by the solicitor or lawyer and the lawyer will also witness your ID documents to be sent back with the signed documents for settlement.

Calculator –  https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/reverse-mortgage-calculator

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If you have any further questions please email or call our office on 1300 881 807.

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