Enjoy your retirement years in comfort with the help of the Seniors Access Home Loan
For Australians over the age of 63, St.George offers the Seniors Access Home Loan. This is a reverse mortgage that allows you to use the equity that you worked to build into your home to help finance your retirement.
St.George offers a wide range of home loan products that can meet the needs of just about anyone. This includes a comprehensive package loan that combines your home loan with transaction account and credit card. This award winning Advantage Package will save you money on both interest rates and fees.
|Product Name||St.George Seniors Access Home Loan|
|Interest Rate Type||Variable|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$10,000|
|Maximum Loan Amount||$250,000|
|Maximum Insured LVR||25%|
|Mortgage Offset Account||Yes|
|Suitable for Investment||No|
|Available as equity loan/line of credit||Yes|
|Repayment Type||Principal & Interest and Interest Only Options|
|Ongoing Fees||$10 monthly ($120 p.a.)|
- No income verification required to borrow
- No regular repayments required
- There is a $950 application fee
- There is a $10 monthly account fee
Things to consider about the St.George Seniors Access Home Loan
The Senior Access Home Loan offered by St.George is only available to seniors aged 63 and over. The amount borrowed will depend on the age of all of the applicants and the value of the home.
This loan is classified as a reverse mortgage. This means it allows you to borrow funds using the equity built in your home, and requires no repayments until the property is sold, you no longer live in the home, or all borrowers pass away.
Borrowers will be allowed to access the equity of their home at an interest rate of so long as they own it outright. Loan amounts start at $10,000 and increase to $250,000 depending on how old the applicants are and the assessed value of the home.
The funds obtained from this loan will be issued as a lump sum and can finance whatever you wish. It can be used to pay for a vacation, medical expenses or just as an addition to your retirement income.
Features of the St.George Seniors Access Home Loan
- Loan to value ratio (LVR). The specifications for the amount you can borrow with this loan depend on both your age and the LVR which St.George will determine. Seniors aged 63 to 69 may borrow up to 15% of their home's value or $150,000, whichever is lower. Those aged 70 to 79 may borrow the lesser of $200,000 or 20% of the home's value. Seniors who have reached 80 will be allowed the lesser of 25% of the home's value or $250,000.
- Loan term. As with the LVR, the loan terms are structured differently in this type of reverse home loan. Deferred payments are allowed and the loan will continue to accrue interest and fees monthly until the property is sold, the borrowers have vacated the home or all borrowers named on the home loan documentation have passed away.
- Repayment frequency. Repayments are optional. Instead, the interest and fees are added to the loan balance each month. This means that the principal in your loan will increase over time.
Fees you can avoid
- Lender’s Mortgage Insurance (LMI). The low LVR makes this extra insurance to the lender unnecessary.
Fees you can’t avoid
- Establishment fee. The borrower will be responsible for paying $950 to St.George for the establishment of this loan.
- Monthly fee. Your account will be charged a $10 monthly fee to maintain your account.
- Valuation fee. You will be responsible for paying for the valuation of your property. The cost will vary depending on the location and size of your home.
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How to apply for the St.George Seniors Access Home Loan
To be eligible for this type of loan you must meet very specific requirements:
- Age. All applicants must be at least 63 years of age.
- Property. The home must be completely owned by you.
If you meet these requirements you can click 'Go to Site' to begin the application process. Please gather the following documentation to help expedite the process:
- Driver’s license. A valid driver’s licence number or other form of identification will be needed to confirm your identity and age.
The decision to take out a Seniors Access Home Loan is not to be taken lightly. You should consider talking with a financial advisor or accountant before making this commitment. If you still think this is right for your situation, explore similar offers being made by other banks to make sure that you are getting competitive rates and fees.
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St.George Seniors Access Home Loan Interest Rate History vs RBA Cash Rate Graph
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