6. How much equity can I release?

The value of the equity that you can release depends upon your age and the value of your property. In general, the older you are the more we can advance you. The amount is normally between 10% and 45% of the value of your property. Contact us to find out how much equity is available to you.

 7. Do I have to make loan repayments?

No. You are not required to make any repayments whilst you (or your spouse/partner) are still living in your home as all interest and fees are added to the loan. The debt must still be repaid at some stage, generally after the last surviving borrower has passed away, and can be from the sale of the property or other assets.

There are options depending on the lender to make payments if you wish.

 8. How will I receive the funds from the loan?

You can choose to receive the funds either as a single lump sum after settlement or an initial amount at settlement with a series of equal instalments either monthly, quarterly, 6 monthly or annually over a period of 5 – 10 years from the date of settlement.

 9. What happens to my home if I sell or move into long-term aged care or pass away?

In the event of you both or the remaining Borrower moving into long-term aged care or passing away, we will work with you or your Executor to sell your property or arrange for the debt to be repaid from other assets. This would normally be within three to six months from either event.

 10. What happens if my property is sold for less than the amount I owe?

With the lenders belonging to SEQUAL (No Negative Equity Guarantee), provided the terms and conditions of the loan have been met, you will never owe more than the value of your home and you can stay in your home for as long as you choose.  You or your estate will not be asked to make up any difference if the loan balance is greater than the sale proceeds.

 11. Can I stay in my home for as long as I want?

With a Reverse Mortgage Loan, provided the terms and conditions of the loan have been met, you can stay in your home for as long as you want.

 12. Can I apply for this loan if I still have a mortgage?

You may apply for a Reverse Mortgage Loan if you still have a mortgage secured on your home. However, you will be required to repay your existing mortgage in full from the proceeds of the Reverse Mortgage Loan.

 13. Will I have to produce any proof of income to be assessed for a Reverse Mortgage Loan?

No, you will not be required to produce any bank statements or proof of income.

 14. Will my government income support be affected if I take out this loan?

If you are receiving any Government Income Support, we strongly recommend you contact a Centrelink Financial Information Services (FIS) Officer to assess any impact a Reverse Mortgage Loan may have on your entitlements. A FIS officer can be contacted on 13 23 00.

 15. How is the Reverse Mortgage Loan repaid?

Unlike traditional loans and mortgages there is no fixed repayment date. The loan only becomes repayable when the earliest of the following occurs:

1.       You sell your home or investment property or

2.       You have both permanently vacated your home or moved into long-term aged care or

3.       You have both passed away.

 16. Can I ensure there will be an inheritance for my beneficiaries?

Some lenders have  ‘Protected Equity Option’ you can choose to protect a proportion of your property’s future value. That way, you have a guaranteed proportion of the sale proceeds set aside for you or your beneficiaries, no matter what the final loan balance is or subsequent movement in the value of your property.

 17. What happens if interest rates change?

There are a number of rate options available from the different lenders:

• Fixed for a period of time usually 5-10 years
• Fixed for the life of the loan or
• Variable.

 18. Can I make repayments on the loan at any time?

You are entitled to make voluntary repayments on the loan at any time. However, because some of the loans are at a fixed rate of interest, there may be fees involved in making the repayment at the time. We recommend that you contact your lender before making any repayments.