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 principles of any reverse mortgage are that you are not required to make any repayments until you move out of the home on a permanent basis, e.g. into permanent aged care, or die. Interest is accrued over the length of your loan, but is added to the final repayment amount. As for how you spend it, RBS leaves that entirely up to you. Back to section top
What are your current interest rates?: 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 advisor will 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 ONGOING FEES OR CHARGES when comparing our interest rates to other reverse mortgage providers. Refer to the Comparison Rate table for the current rate. Back to section top
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 house?: Under the terms of your loan, you have a 12- month period within which to sell the security property and repay your loan. In the event of your death, we do not simply come in and take over the sale. The sale is left entirely in the hands of 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. Back to section top
Will my loan 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 RBS with all your family members and any other beneficiaries. Remember, you have the option to protect up to 25% of your equity as well. Back to section top
What about my pension or social security benefits? Will these be affected by my loan?: They may, which is why we urge you to talk directly to Centrelink, who will advise you accordingly. Back to section top
What if my home is already mortgaged?: You must clear all debts against your property first. The outstanding balance of your mortgage would be repaid by your RBS loan. Back to section top
Can I repay my loan at any time?: Yes. However, Early Repayment Fees are applicable if you voluntarily repay completely within the first five years of a Reverse Mortgage and you may incur Break Fees if you voluntarily repay a fixed rate loan early. There are no early repayment fees on Accommodation Bond Loans or Investment Property Mortgages, but a discharge fee is payable on all loans.Back to section top
Who is RBS?: The Royal Bank of Scotland Group, founded in 1727, is one of the foremost financial services groups globally. Our operations span retail banking, corporate and commercial banking, financial markets activities, wealth management and insurance. In Asia Pacific we serve corporate, institutional and public sector clients in 11 countries.
RBS Group (Australia) Pty Limited and its subsidiaries is a leading provider of corporate and financial services. We have had a local presence since 1974 and work on some of the local market’s largest and most complex transactions and projects for our corporate, institutional and public sector clients.Back to section top
How and when do I pay this loan back?: No repayment or interest is due during the term of your loan. The balance of your loan is repaid within 12 months of one of the following events occurring: 1) the borrower - or in the case of joint borrowers, the last surviving borrower permanently moves out; or, 2) the death of the borrower or, in the case of joint borrowers, the death of the last surviving and inhabiting borrower. You are free to repay the load at any time, but you need to check whether any early repayment or break fees apply. Back to section top
Why don't I have to make any repayments prior to one of these events occurring? How does that work?: The amount you have borrowed and any interest and fees are capitalised back into your reverse mortgage. This means that instead of making monthly repayments, this interest and fees, are simply added to your loan total. The final amount does not have to be repaid until one of the events listed above occurs. Back to section top
How does this loan make my life easier?: It allows you the financial freedom to do a range of things you may not be currently able to do and keep enjoying making more life memories. This could include increasing your monthly disposable income, renovating or re-painting your home, purchasing a new car, paying your grandchildren's university fees, or simply easing your day-to-day living. Back to section top
So how much can be released?: Unlike many of the similar reverse mortgage products currently available on the Australian market, RBS has NO MAXIMUM LIMIT. The amount you borrow through your loan is entirely up to you but is dependent on the value of your property and the age of the youngest borrower. The minimum amount you can borrow is $10,000. Back to section top
Can my Equity Release Plan ever exceed the value of my property?: The Sequal code of conduct states that the only basis that that the No Negative Equity Guarantee can default is in the event of fraud or malicious damage being caused by the borrower. RBS fully meets this code, so even if interest rates rise or house prices fall dramatically the amount of your loan will not exceed the value of your property. Back to section top
Can I borrow more later on if I need?: Yes. You may apply for further advances at any time. Further advances are subject to the same, original lending criteria and conditions. Back to section top
So I have the choice of a lump sum or monthly income plans?: Yes. You can choose to have your loan paid to you in a number of ways. These are: 1a) as a Lump Sum; 2) as a regular monthly income only; or, 3) a flexible drawdown facility. Back to section top
How does the monthly income option work?: Using the "How much can I borrow?" calculator is the best first step. Put in the number of years you want to draw down money over; then decide whether you want equal instalments or the amount to increase by 2.5% per year. The maximum will appear, then you can enter the amount required Back to section top
How does the flexible draw down option work?: You can decide how much you would like to borrow at the time the loan is set up. it is then up to you to decide when you want to draw your money, with the only condition being that it must be a minimum of $1,000 each time. Back to section top
Are there any restrictions on the flexible draw down option?: The initial limit is agreed at the time of the loan and is then available for ten years. The limit may be reduced if the value of your property falls which is assessed every three years. Back to section top
Do you have any fees or charges?: Naturally, interest is accrued monthly on your loan and you will need to pay for your initial valuation ($300) plus your own legal fees. Apart from that we have no ongoing fees and charges although, should you decide to voluntarily repay your loan in the first 5 years you will incur a repayment fee. Fixed rate loans may incur Break Fees, while if you change the structure of your loan there may be a fee of $250. Back to section top
So there any no ongoing fees or charges?: That's right. We do not have any ongoing monthly fees or charges. The only instance in which you will incur a fee is if you decide to voluntarily repay your loan in the first 5 years, or if you voluntarily repay a fixed rate loan during its term or if you request a change to your loan. There is a discharge fee at the end of the loan. Back to section top
Can I ever be forced to leave my home?: No, you can continue to live in your property for as long as you like, as long as you carry out essential maintenance and maintain the buildings insurance policy. Back to section top
What if I move?: As long as you meet with our criteria at the time of your move, you may be able to transfer your loan to your new home. You will need to discuss things with us in advance of any move. Back to section top
What if I choose to sell my property or move into permanent care?: You are not restricted and you can sell at any time. Once your home has been sold, your reverse mortgage will be discharged at settlement and the balance of funds from the sale given back to you. If you move into care you also have the option to use our Accommodation Bond Loan or Investment Property Mortgage, so you do not have to repay the loan automatically - call our enquiries line 1800 99 99 59 if this need arises. Back to section top
What if my spouse dies?: You can continue to reside in your home for the remainder of your life or until you decide to permanently move, assuming the property is also in your name. Back to section top
So how will my loan be discharged?: Your loan is paid out by: 1) the amount owing is taken after the sale of your property; or, 2) other means - such as beneficiaries of your estate who choose to keep the property and refinance the balance owing. Back to section top
Does this mean my family misses out on their inheritance?: No. Once the property is sold and the amount owing on your loan has been paid out, you remain free to distribute any remaining sale money to whomever and however you choose. This amount will depend on how much you have borrowed and is affected by housing price growth, the duration of your plan and market interest rates. We highly recommend however, that you discuss your decision to choose one of our reverse mortgage products with family members and any other beneficiaries. Back to section top
How does the protected equity option work?: You can decide that up to 25% of your equity is protected and so when it is sold that percentage is returned to you before repaying the loan. It will reduce the amount you can borrow, but there is no fee for this option and it does mean that you will definitely have some money left when the loan is repaid. Back to section top
Are there any restrictions as to what I can do with the money?: No. You can spend it however you want. Back to section top
Are there any conditions I must adhere to during the lifetime of my loan?: Yes. The borrower(s) must live in the home. It is a condition of the loan that your home is properly maintained during the term of your plan as this affects its market value. We will organise for a non-intrusive property valuation every three (3) years. The property needs to be insured by you and you must continue to pay all rates due. Back to section top
What if there is someone else living in my home?: Friends and family are entitled to live with you but as they are not the nominated owner or borrower they can have no rights or interest in your property. Back to section top
What is the RBS Customer Enquiries line?: 1800 99 99 59. This will connect you to your local expert. Back to section top
Why choose RBS?: If the above features haven't convinced you, we have also won numerous awards in the last 12 months from independent product experts. These have included Money Magazine (Best Bank Reverse Mortgage 2008), Your Mortgage Magazine (Best Bank Reverse Mortgage 2007) and both Smart Investor Reverse Mortgage Awards in 2007. Back to section top

Accreditation Material

1.	Introduction
2.	The Concept Behind Equity Release
3.	How Equity Release Products Work
4.	Who is RBS?
5.	Reverse Mortgage Product Summary
6.	Reverse Mortgage Set up costs
7.	Protecting Reverse Mortgage Clients Interests
8.	How much can be released?
9.	How may funds be withdrawn?
10.	How does Centrelink Assess Equity released?
11.	Key Questions
12.	Case study
13.	How Are Loans Finalised?
14.	Accommodation Bond Loans
15.	Accommodation Bond Loans Product Summary
16.	Accommodation Bond Loans Set up costs
17.	Protecting Accommodation Bond Loans Clients Interests
18.	Investment Property Reverse Mortgage Loan
19.	Investment Property Reverse Mortgage Loan Product Summary
20.	Investment Property Reverse Mortgage Set up costs
21.	Protecting Investment Property Reverse Mortgage Clients Interests
22.	Frequently asked questions