Establishment fees are added to the loan. Fees - Ongoing fees will remain constant for the life of the loan (although in reality fees may vary over time).Actual interest rates and fees may vary from those used in this calculator. Financial institutions may calculate interest payments differently, which may vary outcomes. Interest rates - Interest rates will remain constant over the life of the loan (although in reality interest rates may fluctuate over time).It is safer to enter a conservative property growth rate, especially if you are looking for a reverse mortgage for 5 years or less, as house prices may not increase at all and may even decrease. The calculations assume a constant rate (although in reality this rate will rise and fall). Increase/decrease in property value - Your house value is updated each year using the increase/decrease rate entered in the calculator.ASIC does not forecast economic or market conditions or regulate residential property markets. This is not a prediction or a forecast about interest rates or home values by ASIC. ASIC hereby excludes all liability to the extent permissible by law.Īmounts calculated are estimates you may end up with more or less equity in your home. The use of the Calculator by a financial adviser does not constitute an endorsement or a recommendation by ASIC of any products or services or of any third party products or services offered by such financial advisor. By entering ASIC's Moneysmart website and by using the Calculator, the user will be deemed to have released and have discharged ASIC, from all liability in respect of any loss suffered as a result of relying on the information generated by the Calculator. Users should seek appropriate independent professional advice prior to relying on, or entering into any commitment based on any results generated by the calculator. ASIC therefore does not guarantee, and accepts no legal liability whatsoever arising from or connected to, the accuracy, reliability, currency or completeness of any data entered or assumptions inserted when using such Calculator. Whilst the Commonwealth, represented by ASIC ("ASIC"), is the developer and owner of the Reverse Mortgage Calculator ("Calculator"), the Calculator is available for use by members of the public as well as financial advisers and as such ASIC has no direct control over the results generated by such Calculator. You will need to satisfy the lending criteria of a credit provider to get a reverse mortgage. You should consider obtaining advice from a licensed financial adviser or credit provider before making any financial decisions about a reverse mortgage. The results of this calculator are not advice in relation to a financial product. To update lender limits or include a lender that does not appear in the drop-down menu, please email. To find out more about how lenders should use this calculator, please see ASIC's Information Sheet. These will appear in the printout from the calculator. Enable lender to enter their contact details and/or Notes for the client's reference in the report settings of the calculator (optional feature).Apply the lender's borrowing limits, including the loan to value ratio (LVR), minimum borrower's age and maximum loan amount.Lenders who use this calculator must choose their lender institution/products from the drop-down menu at the start of the Calculator. The home equity you have in the future will depend on the following factors: The outstanding loan is the total amount that you owe it is the total amount borrowed, including the accumulated interest and fees. Repayments are generally not required while you live in your home.Įquity is the part of your home that you own outright it is the balance you receive after your loan is repaid. Interest is typically added to your loan and compounds over time. With a reverse mortgage you borrow money using the equity in your home as security. The instructions set out in this calculator for the making of equity projections have been approved by ASIC for the purposes of s 133DB(1)(a) of the National Credit Act and reg 28LD(2) of the National Credit Regulations. Explore 'What happens if?' scenarios to see the impact of interest rate and home value assumptions on your home equity.This calculator is designed to help you see if using a reverse mortgage could be worthwhile for you.
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