Frequently Asked Questions

1. How can I have a loan and not have to make any repayments in my lifetime - what's the "catch" - and will you be telling me how I can spend it?
2. Do I lose ownership of my home, and can I ever owe more than the value of my property?
3. What are your current interest rates?
4. What happens if I die or move into permanent aged care? Will you want your money back straight away, like in a 'fire sale', and who is in charge of selling my property?
5. Will my Loan affect my children's and grandchildren's inheritance?
6. What about my pension or social security benefits? Will these be affected by my Investment Property Mortgage?
7. What if my home is already mortgaged?
8. Can I repay my Investment Property Mortgage loan at any time?
9. Can I combine an Investment Property Mortgage with a Reverse Mortgage?
10. What is the Customer Enquiries phone number?

How can I have a loan and not have to make any repayments in my lifetime - what's the "catch" - and will you be telling me how I can spend it?

There is no "catch". The principle is that you are not required to make any repayments until the term of the loan is up. Interest is accrued over the length of your loan, but is included in the final repayment amount. As for how you spend it, we leave that entirely up to you.

Do I lose ownership of my property, and can I ever owe more than the value of my property?

No, and, no. You continue to own the property. And, because ABN AMRO's Investment Property Mortgage has a No Negative Equity Guarantee, you can NEVER owe us more than the value of your property as long as you comply with the terms of the loan.

What are your current interest rates?

The current rates are available on the Interest Rates and Comparison Rates page. As you are aware interest rates fluctuate from day to day and are guided by the Reserve Bank, but we are determined to keep our rates as competitive as possible. Your financial adviser will also have a copy of our current, low interest rates at the time of your application. You should also take into account the fact we have NO MONTHLY FEES OR CHARGES when comparing our interest rates to other reverse mortgage providers.

What happens if I die or move into permanent aged care? Will you want your money back straight away, like in a 'fire sale', and who is in charge of selling my property?

The loans both have set terms (5 or 20 years), with no repayment required until the chosen term elapses. If you die within the term then repayment is required within either 12 months or the end of the term, whichever is the shorter period.

It doesn't matter if you move into aged care. You stay in control. As long as the proceeds are sufficient to repay the loan, the sale is left entirely in your hands,the Executor of your Will, or your family, depending on the details as set out in your Will. Once the property is sold, the loan and any interest accrued is repaid to us and the balance is divided according to the terms of your Will. Alternatively, your family could choose to keep the property and simply repay the loan. It is your choice.

Will my Reverse Mortgage affect my children's and grandchildren's inheritance?

Yes, it may, if you have decided that the proceeds from the sale of your property will be divided among your family. This is why we strongly emphasise the importance of discussing your decision to take out a loan with ABN AMRO with all your family members and any other beneficiaries. Remember, you have the option to protect up to 25% of the value of your property as well.

What about my pension or social security benefits? Will these be affected by my Investment Property Mortgage?

They may, which is why we urge you to talk directly to Centrelink, or your adviser, who will assist you accordingly.

What if my home is already mortgaged?

The outstanding balance of your mortgage would be repaid by your Investment Property Mortgage loan, leaving the surplus available to you.

Can I repay my Investment Property Mortgage loan at any time?

Yes. However, there is a discharge fee and you may incur Break Fees if you voluntarily repay a fixed rate loan early. If you were to die within the term of the loan though there are no break fees.

Can I combine an Investment Property Mortgage with a Reverse Mortgage?

Yes. We will assess each loan independently depending on their value. See www.abnamroreversemortgage.com.au for details.

Our Customer Enquiries team are understanding and knowledgeable and will answer any further questions you may have. Just call 1800 999 959.