Frequently Asked Questions

  1. What is meant by the terms Equity Release, Lifetime or Reverse Mortgage?
  2. What can the loan funds be used for?
  3. Can I make repayments?
  4. How much can I borrow?
  5. Will my home be valued?
  6. Will I be able to borrow more?
  7. Do I need to obtain independent legal and financial advice?
  8. Will an Equity Release loan affect my pension/Centrelink Income?
  9. Do I need to involve my family in this transaction?
  10. How can I work out how much my loan could grow to over time?
  11. What happens if the loan balance exceeds my property’s value?

1 - What is meant by the terms Equity Release, Lifetime or Reverse Mortgage?

It is a loan to senior homeowners that allows them to access a portion of the equity value in their home. No repayments are required whilst the borrower(s) remains in their property. Interest and fees accrue on the loan and the loan is repayable in full when the last surviving borrower permanently vacates the home or the home is sold.

2 - What can the loan funds be used for?

Generally, the funds can be used for any worthwhile purpose.

3 - Can I make repayments?

Repayments can be made at any time. You should check with the Lender to see whether any fees apply.

4 - How much can I borrow?

Each SEQUAL member has different criteria when assessing how much each applicant may borrow. The amount you can borrow will generally be determined as a percentage of your home’s value, and based on the age of the youngest borrower as well as the location and value of your property.

5 - Will my home be valued?

SEQUAL members need to ensure they have the most current and up to date value of your property. When assessing your loan application, a Valuation is likely to be required. Some Lenders will re-value your home from time to time, to ensure your property remains in good condition and to monitor changes in property values. You should check with your Lender regarding the frequency and cost of this service.

6 - Will I be able to borrow more?

Some SEQUAL members allow you to borrow further funds. Any request for further funding, will be subject to the Lender’s underwriting criteria.

7 - Do I need to obtain independent legal and financial advice?

SEQUAL members will strongly recommend you obtain independent financial advice, but you will be required to obtain independent legal advice from a solicitor of your choice.

8 - Will an Equity Release loan affect my pension/Centrelink Income?

As each seniors’ circumstance will vary from person to person, SEQUAL recommends that you discuss your proposed equity release transaction with your Centrelink FIS Officer. They can be reached on 13 23 00.

9 - Do I need to involve my family in this transaction?

SEQUAL recommends that you discuss any equity release transaction with your family.

10 - How can I work out how much my loan could grow to over time?

All SEQUAL members are required to make available a tool allowing you, or you’re adviser, to illustrate the growth of your loan over time, together with the potential change in value of your property. These illustrations should include a range of assumptions around future interest rates and property price movements.

11 - What happens if the loan balance exceeds my property’s value?

All the products offered by SEQUAL members are required to to have a “No Negative Equity or Non-Recourse Guarantee”. This means that provided the terms and conditions of the loan have been met, you will never owe more than the net realisable value of your property, and the Lender cannot seek to recoup any shortfall between the loan balance owing and the value of the property, from you personally or your estate. This is a contractual obligation given by the Lender and it is subject to certain terms and conditions of the loan that should be checked by you and your advisers.

Top

site by britt ambrose design