Broker Reverse Mortgage Questions Answered – Part 2

Written By Craig McInnes

17 August 2017

We recently held a Reverse Mortgage diversification webinar with Mortgage Professional Australia.  Following the presentation, there was a question and answer section which followed where we answered the questions of over 150 brokers who attended. This is part 2 of the common questions answered (read part 1 here).

Do you allow Power of Attorney?

Yes, Heartland allows application under Power of Attorney or Guardianship, subject to approval. The Power of Attorney must also be identified and we require the borrower’s solicitor to provide a Letter of Comfort in relation to the transaction.

Do both members of a couple have to own the property?

No. Up to two people, both aged 60 or over, can apply for the reverse mortgage where at least one of them owns, or is going to purchase, the security property. Both members of a couple must be an Applicant for the loan, however both do not need to be on title as owners of the property.

How does the Aged Care Option work?

The Heartland Seniors Finance Aged Care option is a simple, yet flexible, way to access funds when a customer is residing in or moving into long term care.

It works just like a standard reverse mortgage, except given the borrower(s) will reside in an aged care facility, there is a 5 year term and a 5% higher LVR available.

If one of the customers will still be residing in the security, a standard reverse mortgage should be applied for.

Does Heartland post content on Social Media we can use?

On our Social Media pages, we regularly post interesting and informative articles on travel, property, unlocking home equity, aged care financing, reverse mortgages, downsizing and other important issues concerning Australian seniors. We invite you to follow us and share any of our posts you find to be of value to your customers. We even have a reverse mortgage explainer video which you can use on your own website.

How often are statements sent out?

Statements are issued every six months in January and July to confirm the current loan balance, transactions, and available Cash Reserve and Redraw.

What is the commission structure?

Heartland offers a competitive commission which includes an upfront payment based on the amount drawn and facility available, payments on future drawdowns, and a trail commission. The trail commission tends to increase over time as the loan balance increases.

What kind of properties & locations do you consider?

The minimum property value we will consider is $200,000 and is also dependent on location. Our location guide is generous and can be viewed on our broker portal. In addition to our location guide, the portal provides you with all the materials you need to write a reverse mortgage. Included within are the accreditation paperwork, application form, fee schedule and additional helpful resources.

You can sign up at https://www.seniorsfinance.com.au/broker.

How can I find opportunities to write reverse mortgages?

Many brokers have opportunities within their existing networks to write reverse mortgages. This may be customers you have written a regular mortgage for a number of years ago, referral partners, or parents looking to support children on to the property ladder.  Financial planners, accountants and other brokers are often a good source for referrals.

Any other questions?

Our specialist, dedicated support team are available to assist with any other questions you may have, to discuss scenarios, or provide any assistance you may require in developing this part of your portfolio. Please feel free to contact us at [email protected] or 1300 662 865. We are here to help you.

 

 

Information provided is accurate as at 17 August 2017 and may change from time to time

 

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