You worked hard to acquire your assets, now you can take advantage of your home’s equity with a Heritage Bank Reverse Mortgage Home Loan.
| Product Name | Heritage Bank Reverse Mortgage |
|---|---|
| Interest Rate Type | Variable |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $10,000 |
| Minimum Loan Term | 1 year |
| Maximum Loan Term | 10 years |
| Maximum LVR | 45% |
| Maximum Insured LVR | 45% |
| Mortgage Offset Account | No |
| Mortgage 100% Offset | No |
| Loan Portable | No |
| Suitable for Investment | Yes |
| Extra Repayment | No |
| Available as equity loan/line of credit | Yes |
| Repayment Type | Principal & Interest and Interest Only Options |
| Application Fee | $495 |
|---|---|
| Valuation Fee | $350 |
| Ongoing Fees | $0 p.a. |
| Settlement Fee | $495 |
| Discharge Fee | $250 |
Pros
- Minimum loan of $10000.
- There is a $0 per account keeping fee.
Cons
- Establishment fee of $495.
- $350 valuation fee for under $2 million and is waived when loan proceeds to settlement.
- Settlement fee of $495.
Things to consider about the Heritage Bank Reverse Mortgage home loan.
Properties are often the largest investment we have and so are an option to use for further financing. With a reverse mortgage loan, you can use your house as a cash asset and not have to lose its ownership. Some of the things you might want to consider with the Heritage Bank Reverse Mortgage Loan are the purposes you can use it for. In this case you can use it for general purposes such as education expenses, buying a new car, paying your credit card debt, taking an overseas holiday or even renovating your home.
Heritage Bank offers a diverse borrowing limit based on your age and you get a percentage of the property’s value, also based on your age. The older you are, the more you can take advantage of.
Features of the Heritage Bank Reverse Mortgage Home Loan
- Borrowing limit. The borrowing limit will depend on your age and you will be able to borrow a percentage of your home’s value. This begins at 15% and goes up to 45%. The minimum age is 60 years, and the borrowing limit for this age is 15%. This increases 1% each year until the borrower reaches 90-years-old and is able to borrow 45%of their property.
- Repayment options. This loan gives you various payment options, including the option to make lump sum repayments. Regular repayments can be made annually or quarterly over a period of five to ten years. You can use a cash reserve component or a combination of all these repayment options to clear your home loan.
- Availability. This loan is only available to senior citizens. Borrowers must be aged 60 years or older to apply.
Fees
Repaying your loan early will not cost you a thing. There are no early repayment fees with this provision, however, below are some of the fees that are charged with this loan.
- Application fee $495. This fee is charged upon application.
- Valuation fee $350. This is charged for properties that are valued below $2 million, however, is waived if the loan proceeds to settlement. If the property is valued above $2 million you will be quoted a fee when you apply.
- Settlement fee $495. This is for the setup and organisation of the loan accounts.
- Discharge fee $250. This is charged upon the closure of the home loan accounts.
How to apply for the Heritage Bank Reverse Mortgage Home Loan
You can qualify for a Heritage Bank Reverse Mortgage Home Loan if you are:
- A senior citizen: Reverse mortgage home loans are only eligible for senior citizens aged 60 years and above. The loan is facilitated by Heartland Seniors Finance.
- An Australian citizen: You must be an Australian citizen or resident to be eligible for this loan.
Not all properties are eligible for refinancing. Below is the property criteria for this loan.
- Mortgage free: Your property must be mortgage-free in order to be eligible for this loan. Heartland Seniors Finance does not offer loans to leasehold properties.
- Property must be in good condition: Your property must be in good condition to be considered for refinancing. You also must reside in the house for it to qualify.
You can apply for a Heritage Bank Reverse Mortgage Home Loan online. Click on ‘Go to Site’ to begin your application process.
Heritage Bank Reverse Mortgage Home Loan offers a way to use your home as a cash asset. Compare the reverse mortgage loans available in the market while considering this product.
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