Reverse Mortgages

If you would like the financial ability to spend your retirement how you choose, with independence and dignity, you should talk to us. A Reverse Mortgage will allow you to borrow against the equity in your home without having to sell it – releasing funds for a well-earned and comfortable retirement.

How a Reverse Morgage Works

Many seniors are now living in homes that hold much of their wealth. By accessing some of this wealth without having to move, you can do the things you need, or have always wanted to do and live the retirement you deserve. A Reverse Mortgage enables you to use some of the money tied up in your home without having to sell it by taking out a loan secured against your home. The total loan amount, including accumulated interest, is usually repayable when you move permanently from your home; this could occur when you sell your property, move into longterm care or pass away. You continue to own and live in your home for as long as you wish, benefiting from any potential increase in property values. Making regular repayments is not necessary, although you are free to do so at any time. The amount you can borrow is typically based on your age, property location and the value of your home. A Reverse Mortgage is designed to help you manage your financial requirements by accessing only what you need, as and when you need it.

What can I do with the money?

A Reverse Mortgage is yours for you to do whatever you choose. Many people use the loan to fund home repairs or improvements, repay debt, travel to visit family members, pay for medical procedures, upgrade to a more reliable car, assist with in-home care, or a host of other uses to make life easier and more comfortable. Fundamentally, a Reverse Mortgage is designed to help you live a better retirement. A Reverse Mortgage is designed primarily to release funds to improve your quality of life. You should review carefully any proposal that involves borrowing to invest, and we strongly recommend you discuss any such proposal with a lawyer or financial adviser and your family. You should contact Centrelink to discuss any impact borrowing may have on your pension or other government entitlements.

Who can apply?

Anyone aged 60 or over who owns their own home can apply for a Reverse Mortgage.

Secondary Properties

A Reverse Mortgage is also available to be taken over an Investment Property or Holiday Home.

Aged Care Option

The Aged Care Option is available for those residing in or moving into permanent long-term care. It has a maximum term of 5 years. Any customers who currently reside in and intend to stay in their home should not consider or select this option.

Call us on 1800 781 551 to find out more

Releasing equity with your Reverse Mortgage

Loan Drawdown Options

Only you know how much money you may need at any given time.
We offer three options to access your loan that can be used in combination:

  1. Lump Sum - This is the initial advance made to you on settlement. In addition, you may also have a Regular Advance or Cash Reserve facility made available on settlement.
  2. Regular Advances - Our Regular Advance option enables you to complement your retirement income with a regular advance. This can be done monthly, quarterly or annually over 5 or 10 years and helps many of our customers live a better retirement.
  3. Cash Reserve* - Our Cash Reserve facility enables you to put aside some funds for future needs, such as renovations, travel, health care, to take the stress out of bills or those unexpected expenses.

*Subject to lending criteria, property location and change. If the security property is an Investment Property or Holiday Home, the maximum amount available is reduced by 25%.

Safeguards

There are a number of features and protections we have put in place to help ensure you are comfortable with your decision to take out a Reverse Mortgage.

Ownership of your home
You retain ownership of your home at all times, and continue to benefit from any increase in property value.

Equity Protection Option
Under the Equity Protection Option you may choose to protect a percentage of the eventual net sale proceeds of the property (10%, 20% or 50%). When your loan is repaid, you or your estate are guaranteed to receive any chosen Equity Protection percentage. For example: You choose to protect 20% of your home and the net sale proceeds when you sell are $500,000. As long as you meet your obligations under the loan, the maximum that you or your estate would be required to pay us would be $400,000, even if the loan balance on your loan was higher than this amount. Loan approval, terms and conditions, fees and charges apply. Please be aware that by choosing the Equity Protection Option this will reduce the loan amount available by the percentage selected.

Independent legal advice
It is a requirement that you seek and receive independent legal advice on the loan agreement issued from a solicitor of your choice.

Independent financial advice and family involvement
We strongly recommend that you first discuss with your financial adviser and family when considering a Reverse Mortgage.

Your obligations under the Loan
In order for us to keep our promises, you will have a number of legal obligations to us. These include continuing to live in and look after your home, making necessary repairs as required and protecting it from damage. You will also need to continue to pay your rates and adequately insure your property. If you do not meet your obligations under the loan, we may be unable to honour its promises to you.

Other Occupiers
If you have a spouse or partner, they need to be party to the loan. This ensures they benefit from the promises and protections our loan offers. Additional occupiers in your property, such as children or carers, are permitted. However, they will be required to sign an acknowledgement confirming that they understand the Lifetime Occupancy Promise will not apply.

Call us on 1800 781 551 to find out more

Starlight Home Loans
Address

PO Box 6100
Kincumber NSW 2251

Contacts


Phone: 1800 781 551