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Accommodation Bond Loan product details
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Getting started
| Getting started | |
|---|---|
| Minimum amount | $20,000 |
| Maximum amount | No maximum for loans, subject to property valuation. (Variation on standard terms for loans or properties over $1m) |
| Loan Value Ratio (LVR) | Maximum of 40% available for any age over 60 years (subject to postcode) |
| Term | 5 Years |
| Property restrictions | No retirement villages/resorts or transportable homes. Some postcode restrictions apply. |
| Negative equity guarantee | Neither the borrower nor their estate will owe more than the value of the property unless the borrower breaches the loan terms. |
| Outstanding borrowing | To be repaid at drawdown |
| Insurance requirements | Current homeowners' replacement policy |
| Pensions impact | Refer to Centrelink |
The choices
| The choices | |
|---|---|
| Lump sum options | Fixed or Variable interest rate over 5 years |
| Monthly Income options | Variable interest rate over 5 years Equal payments or 2.5% annual increase |
| Flexible drawdown options | Combination fixed and variable rate Combination lump sum, monthly income or cash reserve |
| In addition, you can protect up to 25% of the value of your home (a lower LVR will apply) | |
The set up fees
| The set up fees | |
|---|---|
| Application fee | $700 |
| Valuation fee | $300 for under $1m $550 for properties ovr $1m Request a quote for properties over $2m |
| Independent legal advice | Costs borne by applicant |
| Stamp duty | Payable in some states |
When you have the loan
| When you have the loan | |
|---|---|
| Further drawdowns/redraws | Minimum of $1,000 (variable rate options only) |
| Ongoing fees or charges | $0 |
Repaying or changing the loan
| Repaying or changing the loan | |
|---|---|
| Repayments | None required until the end of the term, or cease to reside in residential aged care, or upon death. |
| Optional repayments | Minimum of $1,000 (penalties may apply on fixed rate loans) |
| Discharge fee | $250 |
| Fixed rate voluntary break fees | Charged at cost |
| Post settlement variations | $250 |
| Voluntary repayment fee | 1-3 years 1% |
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