FAQ'S

Here are the answers to some questions you may have:

Q. What is the difference between a seniors loan, equity release and reverse mortgage?
A. They are all essentially the same product, however, they are referred to by different names by the individual lenders. The consultants at Crest can explain these differences to you.

Q. How do these seniors loans work?
A. These loans allow older people to borrow money to live on without having to make any repayments until they leave and move into care, sell their home, or until they die. Each year, the fees and interest you would ordinarily pay are added to the loan.

Over time, you are charged interest on the interest, or “compound interest”, which builds up the total amount that you owe. Whenever the loan ends and your home is sold, you or your estate must pay back the lender what is owing, out of the sale proceeds.

The minimum age required to arrange one of these loans is 60 years.

Source: ASIC website (www.fido.asic.gov.au)

Q. What is home equity?
A. The value of your home, subtracting any money you owe on it.

Q. How much equity am I able to release?
A. The amount of equity you can release depends on a number of factors. This includes your age, your marital status and how much equity is available in your property.

Q. Am I able to continue living in my home if I take out a seniors loan?
A. Yes, you can stay living in your home when you have taken out a seniors loan. You are able to stay in your home for as long as you want.

Q. What is the interest rate on a seniors loan?
A. The interest rates available vary between lenders. Some lenders offer a "fixed rate" option on their product, meaning the interest rate does not change during the life of the loan. Other lenders offer a "variable rate" which means the rate does change during the life of the loan.

Q. How do I find out more about senior loans, reverse mortgage or equity release?
A. Simply call (02) 9388 0066 and talk with one of our consultants for more information. Or you can email us.