Frequently Asked Questions
Q: Can the amount I owe under the Equity Release Loan ever exceed the value of my home?
A: No. Vision Equity Living (VEL) provide a no negative equity guarantee so the amount you owe can never exceed the value of your home.
Q: Can I borrow more later on, if I need to?
A: Yes. Further advances are available subject to applicable lending criteria and conditions.
Q: Is the Equity Release Loan interest rate competitive?
A: Yes. VEL interest rates are always at or near the lowest in the market. For our current low rates, please click here.
Q: Can I choose how I want my equity released?
A: Yes. You can take your equity release as a lump sum, as a monthly income supplement or as a combination of the two – whatever works best for you.
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 being that if you fix some, or all, of your plan; that portion must be taken as a lump sum payment.
Q: Are there any ongoing monthly fees or charges?
A: No. None.
Q: Can I be forced to leave my home?
A: No. The terms of your agreement strictly prohibit this.
Q: What happens if I decide to sell or move?
A: You can choose to move or sell your home at any time. If you meet our criteria you may be able to transfer your Equity Release Loan to your new home, but you must discuss this with us in advance. Otherwise, when your home is sold your Equity Release 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 Equity Release Loan 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 plan 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 plan:
- 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 your household insurance.
Q: Will my Equity Release Loan affect my pension or other Centrelink benefits?
A: It need not, but might if you take too much as a lump sum. Please seek independent
financial advice or contact Centrelink to clarify your situation.
The Equity Release Loan product is issued by Vision Equity Living Pty Limited (VEL) ABN 57 111 895 473 and distributed by HBF under our Finance Brokers Licence FB3517. The lender for the VEL equity release loans is ABN Amro N.V. Australian Branch. Equity Release Loans are not available in some regional areas and may also be subject to different borrowing ratios and interest rates in locations outside the Perth metropolitan area.
This information is general in nature only and does not take into account your personal objectives, financial situation or needs. You should read the Broker Services Guide – Equity Release Plans and are required to obtain independent financial and legal advice to determine the appropriateness of an Equity Release Loan before proceeding to acquire this product.
HBF Financial Services Pty Ltd
ABN18 009 123 675
FB3517
