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Investment Property Reverse Mortgage Set up costs
| Application Fee | $700 |
|---|---|
| Valuation fee | $300 for properties < $1m; $550 for properties > $1m; On application for properties > $2m |
| Independent legal advice | Costs borne by applicant |
| Mortgage Stamp Duty | Payable in some States |
Once the loan is established
| Further drawdowns/redraws | Minimum $1,000 (variable rate loans only) |
|---|---|
| Drawdown / redraw fee | $0 |
| Repayments | None required until end of term or within 12 months of borrower passing away |
| Optional payments | Minimum of $1,000 (restrictions apply for fixed rate loans) |
| Discharge fee | $250 |
| Fixed rate voluntary repayment | Economic cost |
| Post settlement variations | $250 |
| Borrowers rights | No negative equity guarantee is a contractual right |
| Borrowers obligations | Must maintain property and buildings insurance |