Leader Reverse Mortgages

Reverse mortgages or “equity release” loans allow retirees who may be asset rich but cash restricted access to the equity in their homes.

This gives them money to live on with no repayments to make, and title of their much loved home remains in their name.

How It Works

•  You decide how much money you need and whether you want a lump sum, a monthly income or a combination of both.

•  You select a plan to suit your needs

•  Your money can now be used for any purpose you want.

•  You retain title and continue to live in your own home for as long as you want

•  No interest or repayments are required during the lifetime of the loan. Or, until you sell your home or no longer permanently live there.  

•  Your outstanding balance and the accumulated interest only become repayable when you sell your home, permanently move out, or on the death of the last surviving borrower.

Frequently Asked Questions

Q: "Can the amount I owe under a reverse mortgage loan ever exceed the value of my home?"
A: No. Many finance institutions provide a no negative equity guarantee so the amount you owe can never exceed the value of your home.

Q: "Are there any ongoing monthly fees or charges?"
A: No. None whatsoever.

Q: "Can I be forced to leave my home?"
A: No. The terms of your agreement strictly prohibit this.

Q: "Will my reverse mortgage affect my pension or other Centre Link benefits?"
A: It need not, but might if you take too much as a lump sum. Please seek independent financial advice or contact Centre Link to clarify your situation.

Q: "Can I borrow more later on, if I need to?"
A: Yes. Further advances are available subject to the original lending criteria and conditions

Q: "Can I choose between fixed and variable interest?"
A: Yes. You can choose fixed, variable or part fixed and part variable. The only proviso is that any fixed rate amounts must be taken as a lump sum.

Q: "What happens if I decide to sell or move?"
A: You can choose to move or sell your home at any time. You may be able to transfer your loan to your new home, but you must discuss this with us first. Otherwise, when your home is sold your loan is discharged at settlement with the balance of funds from the sale going to you.

Q: "What if my spouse dies?"
A: Providing your home is in joint names then this has no impact on your plan. You can continue to live in your home for the remainder of your life or until you decide to permanently move out.

Q: "How and when is my reverse mortgage repaid?"
A: We deduct the balance owing after the sale of your property.

Q: "Does that mean my family get nothing?"
A: No. After the balance owing on your reverse mortgage is settled, the remainder of the proceeds from the sale of your home goes to your beneficiaries.

Q: "Are there restrictions on what I can do with this money?"
A: No. The money is yours to spend as you see fit. However, if you are considering investing some or all of the equity you release we strongly recommend you seek independent financial advice.

Q: "Are there any conditions I must adhere to?"
A: Yes. During the life of your reverse mortgage:

•  Your home must be in reasonable condition and be properly maintained – as this affects its market value.

•  You must ensure that all rates and taxes are paid.

•  You must maintain household insurance.