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A Land Lease Home Reverse Mortgage is our innovative approach to borrowing against your home equity in a land lease community.

A reverse mortgage allows you to borrow money using the equity in your home as security. Interest is charged like any other loan, but you don’t need to make repayments while you live in your home. The loan must be repaid in full when you sell or leave your home or, if you move into residential aged care.

To find out more about reverse mortgages, including a reverse mortgage calculator to help you work out how much equity you may have in the future, refer to our Reverse Mortgage Information Statement, and visit the Australian Securities and Investments Commission’s free consumer website at www.moneysmart.gov.au.

A Land Lease Home Reverse Mortgage is a reverse mortgage, so you benefit from key structural and legislative protections. This means you can't end up owing Land Lease Home Loans more than your home is worth (market value or equity).

• Ownership - You remain the owner of your home (and benefit from any increase in property value).

• Lifetime Occupancy - You can stay in your home for as long as you want to.

• No Loan Repayments - There is no requirement for you to make periodic loan repayments (although you can do so at any time without penalty). Interest continues to accrue over the life of the loan which, along with the balance of the loan, is payable when you leave or sell your home.

• 'No Negative Equity Guarantee' (NNEG) - You cannot end up owing us more than your home is worth.

A Land Lease Home Reverse Mortgage allows you to access the equity in your home through a loan facility that doesn’t require repayment until you vacate or sell the property.

The amount you can borrow is a function of the value of your land lease home. The minimum age to qualify is 70 and the maximum amount you can borrow is 20% of the value of your home. You can also opt to have a dollar figure of your home equity protected which is deducted off the value of your home to calculate the LVR.

We encourage you to understand how it may affect your personal circumstances – by talking to friends, speaking to professionals and using available resources such as www.moneysmart.gov.au. Before you enter into a Land Lease Home Reverse Mortgage we will ask that you obtain independent advice from a financial adviser or legal professional, and that you check with the Services Australia Financial Information Service about how it will affect (if at all) any pension or government benefits you are receiving or entitled to receive in the future. Learn more here.

Generally our contracts require repayment on the earlier of:

• the date on which the mortgaged land lease home is sold or transferred; or

• 365 days after a repayment event occurs to the last of a borrower.

A repayment event occurs if a person:

• dies;

• ceases to use the mortgaged land lease home as the person’s principal place of residence; or

• permanently vacates the land lease home.

Protected equity works alongside the 'No Negative Equity Guarantee' (NNEG). You can elect to “protect” a percentage (5 - 20%) of the value of your home. This is best explained with an example: if your home is valued at $500,000, you are aged 70 and want to maximise your equity release to 20% of the home’s value but also want to protect 20% of the home’s value on the repayment date (i.e. $100,000). The maximum amount we can lend is 20% of $400,000 (i.e. $500,000 less $100,000 protected equity amount) or $80,000. If you elected 0% of protected equity (noting NNEG always applies) the maximum amount we can lend is 20% of $500,000 or $100,000. Don’t worry if this appears confusing (it is) and we can explain this over the phone using your specific circumstances and objectives.

We encourage you to get financial advice. This will help you determine how best to deploy your home equity to ensure improved long-term retirement funding. A financial adviser can also help structure your financial affairs to maximise entitlements to the Age Pension.

Yes, Land Lease Home Loans requires you to get appropriate legal advice to ensure you understand your rights and obligations, and to confirm that a Land Lease Home Reverse Mortgage is right for your circumstances.

As the advice needs to be independent we can only suggest you speak to a local solicitor or adviser. For further assistance, please read more here.

The Age Pension is an important source of income for many retired Australians. We always recommend you speak to Centrelink and get financial advice to ensure you understand any impact on your entitlements.

Provided that you are both a Borrower, you remain the owner of your home with lifetime occupancy (you can stay in your home for as long as you want to). There are no loan repayments (the loan becomes repayable when you leave your home), and we provide a No Negative Equity Guarantee (you cannot end up owing us more than your home is worth).

Reverse mortgages are only available with variable rates, the main benefit of this is that you have flexible repayment options. A Land Lease Home Reverse Mortgage loan may be repaid, in part or full, at any time without penalty.

The Variable Interest Rate on a Land Lease Home Reverse Mortgage is listed under Interest Rates.

Reverse mortgage interest rates are generally higher than a standard mortgage because there is no obligation for borrowers to make repayments until the end of the loan.

With a reverse mortgage you have no regular repayments so interest is added to the loan balance that will compound over time. In other words, you pay interest on the amount you have borrowed and on the interest (and any fees) charged.

Your interest rate can rise or fall throughout the term of the loan.

The variable interest rate Land Lease Home Loans offer could be affected by a number of factors, including but not limited to, higher or lower funding costs for the Lender.

Acting reasonably, we can change the pricing of your loan (including your interest rate and credit fees and charges).

Regarding the notice period, we will give not less than 20 days notice of a change to any fees and charges payable and not later than the day on which any change to the interest rate takes effect.

For further details please refer to Terms & Conditions.

The Loan Establishment Fee is $750, and Account Keeping Fee (payable monthly in arrears on each repayment date) is $20 per month. Other fees/charges:

• Special attendance fee (e.g., variation or substitution of security, discharge of mortgage) is $250

• Fee for provision of paper copies of documents is $25

• Dishonour fee $25

• Early repayment fee is Nil.

The loan is called a Chattel loan and instead of a mortgage over your property you provide property security which is logged on the Personal Property Security Register (known as PPSR). We also take a charge over the Residential Site Agreement you have with the community operator, and we have a separate agreement with the operator that restricts any transfer of the Residential Site Agreement whilst a loan is outstanding.

Yes, home insurance is required to be in place prior to contracts being exchanged and settlement.

Please do not hesitate to contact us on 1300 555 626 or [email protected].