Seniors Home Equity Release Loan
A Seniors Home Equity Release Loan, also known as a Reverse Mortgage gives borrowers 60 years and over access to the equity in their home without the need to make any repayments until the property is sold or passes to their estate (interest charges and fees are added to the loan each month). Its key features are:
- Borrowed funds can be used for any personal or investment purpose (except business related purposes);
- Borrowers are not required to live in the home (we will lend against investment properties);
- There is no income test to qualify for the loan;
- No repayments are required until sale or transfer of title (borrowers can protect up to 20% of the value of their property to pass on to heirs);
- The "no negative equity pledge" incorporated in the loan agreement means that, assuming borrowers adhere to the loan terms and conditions, neither they nor their estate can ever owe more then the sale value of the security property.
Loan amounts can be a maximum of $1,000,000 (minimum $20,000) based on the age of
the youngest borrower (all owners must be borrowers) and the valuation of the security
property as follows:
|
Age of youngest borrower |
Years | |||||
|
60-64 |
65-69 |
70-74 |
75-79 |
80-84 |
85+ |
|
|
Maximum percentage of security value that can be borrowed |
15% |
20% |
25% |
30% |
35% |
40% |
The loan amount can be drawn down in one amount, taken as a monthly payment over a maximum of 15 years or a combination of a lump sum and monthly payments.
Click here to see the Seniors Home Equity Release Loan product description page.
For more detailed information on this product please call 133 144 to talk to a loans officer or request an explanatory brochure. Alternatively please contact Mortgage House.
