Products

Equity Unlock Loan for Seniors (EQFS)

Equity Unlock Loan for Seniors is a flexible credit facility for customers aged 65 an over who own their own home and are looking to access the equity in their property for personal purposes.

Accredited Commonwealth Bank mortgage brokers selling this product must be Senior Australians Equity Release Association of Lenders (SEQUAL) accredited.

Note:

All new Equity Unlock Loan for Seniors customers must obtain independent legal advice. It is also highly recommended that customers seek independent financial advice from an accredited financial planner or accountant. This will help customers to be fully informed about the financial implications of taking out an Equity Unlock Loan for Seniors.
Every Equity Unlock Loan for Seniors application must have the following three questions completed that confirm the customer's needs and wants for the product. These questions are included as part of the Supplementary Form. All questions must be answered as 'Yes' for the application to proceed.

Do you want the flexibility of not having to make repayments but understand that if you don't, the interest will be added to the loan and will decrease the amount available to you or your estate when the house is sold?
Have you considered and decided against other alternatives such as realising assets, restructuring your income/ superannuation or selling your existing property and downsizing?
If you are on a pension, have you made enquiries with Centrelink to check there will be no adverse effect of your pension?

Third party guarantees are not acceptable security for Equity Unlock Loans. The borrower/s and security must be identical.

Features and Benefits	Repayment Options
Applicants must be aged 65 years or older and own and reside in the residential property being offered as security. In the case of multiple applicants, all applicants must be 65 years of age or older and hold title to the property as either joint tenants or tenants in common. At least one of the applicants must reside in the property. Independent legal advice with a signed Statutory Declaration is mandatory. Independent financial advice is also highly recommended. The interest rate will be based on the Residential Equity Rate with a margin added. There are no interest rate concessions available. Interest is calculated daily and charged monthly so the customer benefits immediately from every repayment they make. Funds can be accessed by cheque, over the counter withdrawal, ATM/ transaction card, EFTPOS, EFTPOB and Maestro/ Cirrus. Funds can also be transferred using Netbank, telephone banking and BPAY. The borrower/s may choose to draw down the funds in one lump sum or periodically e.g. via Automatic Funds Transfer (AFT) or both. Should the borrower/s choose to draw down the facility on a periodic basis, the full amount of the facility limit may not be available due to the capitalised effect of interest and fees. Borrower/s can make withdrawals at any time provided the withdrawal does not take the debit balance beyond the approved limit. Statement frequency quarterly or on request. (a fee applies for requested statements) Customers need to be made aware that all documentation they receive including loan statements will show Line of Credit (LOC) not Equity Unlock for Seniors.	There is no contracted minimum repayment. Interest, fees and charges will capitalise over the duration of the facility. Customers can make repayments of any amount or repay the loan via lump sum repayments at any time without penalty. Repayment of the loan will occur on the: Death of the last surviving borrower (loan will be repaid from the borrower's estate). Sale or transfer of the property (except under Loan Portability). Failure to reside in the security property by the borrower/s for a continuous period of 12 months without prior written consent. Material diminution in the value of the security property which is a result of the borrower's act or omission. No negative equity guarantee The no negative equity guarantee means the borrower's liability is limited to the value of their interest in the property provided they have not willfully damaged the security property or made any misinterpretations surrounding the loan contract and/or the loan application. If at the time of the loan being repaid the loan amount exceeds the value of the property, the difference is covered by the Bank. This is irrespective of whether the loan is repaid due to the death of the borrower or the borrower no longer resides in the security property and the property is sold with the Bank's consent. Example Property is sold for $450,000. Amount required to repay the loan is $500,000. The difference of $50,000 is covered by the Bank.

Features and Benefits

Repayment Options

Applicants must be aged 65 years or older and own and reside in the residential property being offered as security.
In the case of multiple applicants, all applicants must be 65 years of age or older and hold title to the property as either joint tenants or tenants in common. At least one of the applicants must reside in the property.
Independent legal advice with a signed Statutory Declaration is mandatory.
Independent financial advice is also highly recommended.
The interest rate will be based on the Residential Equity Rate with a margin added.
There are no interest rate concessions available.
Interest is calculated daily and charged monthly so the customer benefits immediately from every repayment they make.
Funds can be accessed by cheque, over the counter withdrawal, ATM/ transaction card, EFTPOS, EFTPOB and Maestro/ Cirrus. Funds can also be transferred using Netbank, telephone banking and BPAY.
The borrower/s may choose to draw down the funds in one lump sum or periodically e.g. via Automatic Funds Transfer (AFT) or both. Should the borrower/s choose to draw down the facility on a periodic basis, the full amount of the facility limit may not be available due to the capitalised effect of interest and fees.
Borrower/s can make withdrawals at any time provided the withdrawal does not take the debit balance beyond the approved limit.
Statement frequency quarterly or on request. (a fee applies for requested statements)
Customers need to be made aware that all documentation they receive including loan statements will show Line of Credit (LOC) not Equity Unlock for Seniors.

There is no contracted minimum repayment. Interest, fees and charges will capitalise over the duration of the facility.
Customers can make repayments of any amount or repay the loan via lump sum repayments at any time without penalty.
Repayment of the loan will occur on the:
- Death of the last surviving borrower (loan will be repaid from the borrower's estate).
- Sale or transfer of the property (except under Loan Portability).
- Failure to reside in the security property by the borrower/s for a continuous period of 12 months without prior written consent.
- Material diminution in the value of the security property which is a result of the borrower's act or omission.

No negative equity guarantee

The no negative equity guarantee means the borrower's liability is limited to the value of their interest in the property provided they have not willfully damaged the security property or made any misinterpretations surrounding the loan contract and/or the loan application.

If at the time of the loan being repaid the loan amount exceeds the value of the property, the difference is covered by the Bank. This is irrespective of whether the loan is repaid due to the death of the borrower or the borrower no longer resides in the security property and the property is sold with the Bank's consent.

Example

Property is sold for $450,000.
Amount required to repay the loan is $500,000.
The difference of $50,000 is covered by the Bank.

Product Attributes

Customers Age	Minimum Limit	Maximum Limit	Maximum LVR
65-69	$20,000	$275,000	20%
70-74	$20,000	$325,000	25%
75-79	$20,000	$375,000	35%
80-84	$20,000	$400,000	40%
85+	$20,000	$425,000	45%

Fact Sheet

Important Things to Know About Home Loans and Credit Cards

Home Loan Interest Rates & Fees