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Seniors Equity Access

 

  • Are you asset rich and cash poor? (paid off the house but no cash in the bank)
  • Are you low on superannuation?
  • Are there things in retirement you would like to do but currently can't afford?
  • Do you still have a mortgage but can't afford the repayments ?

 

We can show you how to release equity in your home to give you extra funds for your retirement

At MFC we have a number of lenders offering  Mortgages to help seniors access the equity in their home these are called Seniors equity access or reverse mortgages..

All our lenders are members of SEQUAL (Senior Australians Equity Release Association of lenders) and have to adhere to a strict code of conduct in respect to the loans they offer.

 

Some answers to your most FAQ

 

Q. Who is eligible for a Equity Release Mortgage?

A. People over the age of 60

 

Q. How much can I borrow?

A. The amount you can borrow depends on the age of the youngest borrower and the value of your home, All lenders have a Table showing age and percentage of the property value  you can borrow (LVR) for example

 

Age     60          25       70        75        80         85        90        95

LVR    15%        20%    25%     30%     35%       40%      45%     50%

 

Its easy to work out from this table using the following formula an indication of what you could borrow

[Current value of home] X [Your LVR] = [Amount you can borrow]

 

Q. When do I have to pay back the loan?

A. You won't have to repay the loan until you leave your home or pass away There is no fixed repayment date

Some lenders will allow you to move out of the home and repay only when you die

 

Q. How much need to be repaid?

A. the total funds you received plus accrued interest and fees - minus any repayments you may have made

 

Q. Will I still Own My Home?

A. Yes. the lender holds the first registered mortgage until you such time as you or your beneficiaries sell the home - For example , when you move out or pass away

 

Q. there are two of us living at home> what happens if one Moves out or dies?

A. the other borrower remains in the property

 

Q.What happens if the amount my home is sold for is less than the amount owed? Will I or My beneficiaries have to pay the difference?

A. All the lenders we deal with have a No Negative Equity Guarantee. This means as long as you and your beneficiaries comply with the terms and conditions of the loan you will never own more than the value of your home, so you will never need to make up any shortfall.

 

Q.Can I make any repayments?

A. Most lenders allow full or partial repayments on variable loans at any time. Fee may apply. With some lenders you can also make repayments on Fixed loans. But, break cost will apply

 

Q. Are there any ongoing costs ?

A. Most of our lenders do not charge ongoing fees or charges

 

Q. Will this loan effect my Pension?

A. We recommend you discuss this with Centrelink and require you to obtain independent legal and financial advise

 

Q. If I want to downsize and move into a smaller home do I have to pay back the loan in Full

A. If you choose to downsize some lenders allow you to take the loan with you However, If the loan balance at the time you move is greater than the maximum limit allowed, the difference will need to be repaid. 

 


For more information please click Contact Us or phone us on (02)4625 5712