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An
Equity
Release
Home
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, investment or business purpose.
-
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 family.
-
The "no negative equity" 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 to a maximum of $1,000,000 (minimum $30,000) based on the age of the youngest borrower (all owners must be borrowers) and is based on the valuation of the security property.
The loan amount can be drawn down in one amount, taken as a monthly payment over the lifetime of the loan or a combination of a lump sum and monthly payments.
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