a dinner invitation with friends because you can’t afford to return the invitation? Can’t afford Christmas or birthday gifts for your grandchildren? In retirement you have more time to enjoy leisure activities but do you have the money to do the things you’d like to do and need to do?
You may have retired from work but you haven’t retired from life!
Are you ready to do some things you want or need to do?
- take an overseas holiday
- have a reliable car
- to fly interstate to visit a long-time friend
- renovate the old bathroom
- do that trek in the Himalayas
- equip the house for you or a spouse with disabilities or health concerns
- have that surgery you’ve been putting off
- buy a campervan and “go around the block”
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Whatever you have put on hold you might be able to do now. Please call Evergreen on
1300 784 647 or
email us.
You may be asset rich, but you don’t have to be cash poor anymore! You may think you don’t have the money to improve your life, yet maybe you do. You also realise just how much money is tied up in your house. This can open the door for you to borrow a lump sum or receive a monthly amount to help top up other income.
Loans and Safeguards
Home Equity Release loans for a small amount of the value of your home can make all the difference to your living standards. Often called a reverse mortgage, this type of loan can be designed with limits to protect you.
- There are limits to how much you can borrow, so the risks are minimised.
- You can choose whether to pay any interest or principal or none at all until the property is sold.
- You can reserve up to 20% of the property value for an inheritance or future healthcare costs.
- Borrowers will be required to seek independent legal advice and confirm as part of the Borrower Declaration, that this advice has been obtained.
- Borrowers are encouraged to seek independent financial advice and discuss the implications of entering the loan with the beneficiaries of the estate prior to accepting the loan.
- We recommend that borrowers receiving Government Income support contact a Centrelink Financial Information Officer (FIS) to assess any impact a Seniors Home Equity Release Loan may have on their entitlements.
You can keep your home:
- The title to the home always remains in the home owner’s name and neither you, nor the estate, can owe more than the value of the home.
- The loan only needs to be paid out along with accrued interest and fees when the home owner/s sells or 10 months after the death of the last borrower.
- There is an inheritance protection option (IPO) which enables you to pass on up to 20% of the value of the property to your heirs or for future healthcare costs.
- There is a "no negative equity" pledge. If the property is sold in an arms length orderly sale approved by the lender for an amount less than the outstanding loan amount and the borrower is not in default of the terms and conditions, liability will only be for the amount that is equal to the sale proceeds of the property.
There are many safeguards with Home Equity Release loans so you can;
- always own the house
- always be free to live in it
For full details of the reverse mortgage please see the terms and conditions that will be provided to you prior to you entering the loan.
Have the time of your life
Do the things you really want to do. You’ve always put the needs of your family and children first. Now they’re independent you can have your independence too – at last! Go and enjoy yourself after all those years of hard work. After all you deserve it!
You may have retired from work but you haven’t retired from life!
We provide a range of options that can help you improve your life – because you deserve it! You can choose to borrow a lump sum or to receive a monthly payment.
Please call Evergreen on 1300 784 647 or email us to apply for a Home Equity Release loan or for any assistance with questions you may have about reverse mortgages.
How much can you borrow?
It is easy to work out how much you may be eligible to borrow. There are limits to help safeguard you. Estimate the value of your property then multiply that by your Loan to Valuation Ratio (LVR). The table below shows that 15% of the property value can be borrowed if the youngest borrower is aged 60. The amount is stepped by 1% for each year of age of the youngest borrower.
| Age of Youngest borrower |
60-64 |
65-69 |
70-74 |
75-79 |
80-84 |
85-90 |
91-95 |
| Loan to Valuation Ratio (LVR) |
15-19% |
20-24% |
25-29% |
30-34% |
35-39% |
40-44% |
45-50% |
Examples;
A) The property is worth $200,000, the youngest borrower is aged 79 so the LVR is 34% which equals $68,000.
B) The property is worth $400,000, the youngest borrower is aged 66 so the LVR is 21% which equals $84,000.
C) The property is worth $600,000, the youngest borrower is aged 85 so the LVR is 40%, but an inheritance protection option (IPO) of 20% is required by the borrower.
- Property value $600,000
- Property value minus 20% IPO $480,000
- Maximum loan (based on 40% LVR) $192,000
An independent valuation is required at the time of application for the loan. The minimum lump sum loan is $20,000 and the maximum loan is $1 million. The minimum monthly loan option is $400.
Evergreen Retirement Finance refers insurance inquiries to Ready Care Risk Management. ReadyCare is the Insurance specialist to Evergreen and offers our clients insurance for personal and business needs. They cover income, life, trauma, Total & Permanent Disablement, motor, mortgage repayments, business expense, consumer credit, key business person and gap insurance.
Evergreen Retirement Finance Pty Ltd
Phone 1300 784 647
Fax: (03) 8514 4244
Click to Email
Evergreen Retirement Finance is part of the Interlink Group Pty Ltd which has been providing finance for many years to clients all over Australia. We provide the products and services that our customers enjoy and expect so that we meet their needs now and in the future.
