Life can be expensive when you’re no longer working. And while you do what you can to save money, now is the time you should be enjoying yourself.
An IMB Bank Reverse Mortgage can help you unlock the equity in your home and use this money to:
Our Reverse Mortgage is a type of home loan designed to allow homeowners – aged 70 years or older – to borrow money and use their home equity as security.
The borrowed money can be accessed as a lump sum payment, regular payments or a flexible cash draw facility. You can even request a combination of payment options. For example, you can take a portion as a lump sum, a portion as regular payments and the rest as flexible draw facility. And, you can change your arrangements at any time after your loan has settled; bearing in mind that should you decide, for example, to take more from your flexible draw, then you will need to reduce either the amount of your regular payments, or how long you want them to last.
To help you manage your finances, we’ll show you your available credit on your quarterly loan statement or you can check anytime through Internet Banking or by giving us a call. There are some restrictions around how the money can be spent, but it’s generally used to help fund a comfortable lifestyle in retirement.
An IMB Bank Reverse Mortgage allows you to use the equity in your home to fund your cost of living or one-off expenses – so you can keep living in the home you love. |
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Interest is charged on the amount you borrow, but unlike most other loans, the borrower doesn’t have to make repayments. Instead, the interest is added to your loan balance and you will pay interest on interest, plus on any fees or charges added to your loan.
The effect of paying interest in this way, without making any or many repayments, is that the loan balance will increase over time. This will impact the value of the equity remaining in your property.
Set up an initial draw, monthly draw or flexible draw facility (or a combination of all three) – with the freedom to change your arrangement at any time.
Choose a protected equity option in addition to the no negative equity guarantee.
Access competitive interest rates and pay no monthly loan account keeping fee.
|
|
Variable Interest Rate |
Comparison Interest Rate |
Application Fee |
|---|---|---|---|
|
Reverse Mortgage |
6.25% pa |
6.29% pa The comparison rate is based on a $150,000 secured loan for a term of twenty-five (25) years1. |
495.00 (including valuation if security property value under $2m) |
Our reverse mortgages include a no-negative equity guarantee5, meaning the borrower or their Estate can’t owe more than the value4 of the secured property.
With an IMB Bank Reverse Mortgage, you can also choose a ‘protected equity’5 option, where you can protect up to 25% of the value4 of the secured property in addition to the no negative equity guarantee.
The loan must be repaid in full (including interest and fees) when the secured property is sold, or within 12 months of the last borrower passing away or nominated resident leaving the property.
Repayments can also be made during the life of the loan if the borrower chooses to, but are not required.
Before you take out an IMB Bank Reverse Mortgage, it’s important you read our Reverse Mortgage Information Statement. This contains more information about how reverse mortgages work, and the issues to consider in deciding if a reverse mortgage is right for you, such as:
We require you to obtain independent legal advice and we highly recommend that you seek independent financial advice.
| IMB Reverse Mortgage Product Summary | ||
|---|---|---|
| What are the interest rates? |
6.25% pa Variable Interest Rate |
6.29% pa Comparison Rate The comparison rate is based on a $150,000 secured loan for a term of twenty-five (25) years1. |
| Minumum loan amount | $20,000 | |
| Maximum loan amount | $1,000,000 | |
| Minimum borrowing age | 70 | |
| Maximum borrowing age | N/A | |
| How much can be borrowed? (Loan to Value Ratio) | Refer to LVR tables | |
| Interest rate | Variable rate that can change at any time (please ask us for further details) | |
| Fees and charges | Please ask us for further details | |
|
Payment options:
|
Payment options are flexible to help you manage your finances. You can change the amount of your payment options at any time after your loan has settled, but remember that any changes may affect the amount of credit available to you in the future. For example, if you access more from your flexible draw it will reduce the amount you can access as monthly draw. Note: we will not tell you when you access more than you requested from your flexible draw so you will need to track your available credit, which can be done easily using Internet Banking, on your quarterly statement or by giving us a call. | |
| What is an acceptable purpose for a Reverse Mortgage? | Any purpose permitted by IMB Lending Policy (e.g. living expenses, maintaining the home, travel, repayment of debts) | |
| Can you refinance an existing mortgage? | Yes | |
| When does the loan need to be repaid? |
The loan will need to be repaid when the property is sold, or within 12 months of the last borrower passing away or nominated resident leaving the property |
|
| What can you use as security? | You can use an owner occupied home or investment residential property as security, provided all borrowers are on title | |
| Can the secured property be rented? | Yes | |
| Can you make partial repayments on the loan? | Yes | |
| Can you redraw from the loan? | Yes, a redraw is permitted if you have available funds to draw from the loan | |
| Can you access your funds online? |
Yes, you can view your account and make online transactions to an IMB account for a flexible draw facility or redraw3 |
|
| Does the loan have a no negative equity5 guarantee? |
Yes, neither the borrower or their Estate can owe more than the value4 of the secured property5 |
|
| Does the loan have a protected equity5 option? |
Yes - in addition to the no negative equity guarantee you can protect up to 25% of the value4 of the secured property (with a corresponding reduction in maximum LVR)5 |
|
The maximum amount you can borrow is based on:
The age of the youngest borrower dictates the maximum percentage of the secured property value that can be borrowed (i.e. the Loan to Value Ratio or LVR):
|
Age |
LVR |
Age |
LVR |
Age |
LVR |
Age |
LVR |
Age |
LVR |
|---|---|---|---|---|---|---|---|---|---|
|
70 |
18% |
76 |
24% |
82 |
33% |
88 |
39% |
94 |
44% |
|
71 |
19% |
77 |
26% |
83 |
34% |
89 |
40% |
95 |
45% |
|
72 |
20% |
78 |
28% |
84 |
35% |
90 |
41% |
96 |
46% |
|
73 |
21% |
79 |
30% |
85 |
36% |
91 |
41% |
97 |
47% |
|
74 |
22% |
80 |
32% |
86 |
37% |
92 |
42% |
98 |
48% |
|
75 |
23% |
81 |
32% |
87 |
38% |
93 |
43% |
99 |
49% |
|
|
|
|
|
|
|
|
|
100+ |
50% |
Please note the maximum LVR reduces if you choose a protected equity option.
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Information correct as at May 2018 and subject to change without notice. Lending criteria, terms and conditions, fees and charges apply. For full details refer to IMB Bank’s Reverse Mortgage and Aged Care Loan Terms and Conditions available by contacting IMB. 1. The comparison rate is based on a $150,000 secured loan for a term of twenty-five (25) years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. 2. Only payable on settlement. Includes valuation if security property value is under $2m. If security property value is over $2m an additional valuation fee will apply. Other fees and charges may apply. 3. Internet Banking will not be available to the borrower if an attorney is acting for them – in these circumstances, Internet Banking will be available to the attorney but the attorney will not be able to draw any funds using Internet Banking. 4. As determined by an accredited valuer in accordance with the terms and conditions of the loan. 5. Provided the borrower is not in default under the terms and conditions of the loan.