retirement loan

home is where the heart is - enjoy your retirement

We understand that circumstances change over time and people often feel their options are limited now that they’re no longer earning a regular income. Make the most of your retirement, with less stress and more choice by releasing equity from your home with a retirement loan.

Rates valid from Monday 10 April 2017 and Rates are subject to change.


Product Rate P.A.
Floating Rate SBS Advance Loan   7.55%
Default Interest Rate****
(Charged above the then current
interest rate)

8.00%
 
SBS Bank has suspended the use of fixed rates on SBS Advance.


keep your freedom in retirement

Retirement is about leaving work, not retiring from life, but managing day-to-day bills and expenses can often be a juggling game when you’re retired and on a limited income. Then there are those little expenses which crop up that you didn’t budget for that can really cause sleepless nights.

Did you know that you may be able to release some equity in your own home and continue to live there? A retirement loan lets you borrow against the value of your property and free up some money – money to enjoy the things in life that really matter to you. Like spending time with family and friends or helping the grandchildren through university.


why choose this type of loan?

» You are able to stay in your own home over the course of the loan

» We don’t need a cash payment when you apply

» There are no ongoing fees

»  You don’t need to make ongoing payments (unless you choose to) until you move from your home permanently.

» Our loan repayment guarantee allows the amount repaid to never exceed the net sale proceeds of the home

» You can use your money however you like

» You can repay all of the loan, or in part, at any time

 

involving your family

Taking out a loan against your home is a big decision when you’re retired. If you’re seriously considering a reverse equity home loan, you may want to consider talking it through with your children, grandchildren or other family members.

independent legal advice

Your adviser will want to make sure you fully understand the commitment before signing up for anything and will have your best interests at heart. Bring them along with you to meet one of our team and we can answer any questions or concerns both you and your family members may have.

how does it work?

You can make the most of your retirement with less stress, more choice and a whole lot of fun with a retirement home loan.You take out a home loan with us against the value of your property as security. The loan incurs monthly interest, but this can be accrued so that no payments are required until you permanently move from your home.

interest rates and payments

Our retirement loan has a floating interest rate and we can pay the loan to you as a single lump sum, pay it in annual instalments, or you might prefer to choose a combination of the two to suit your needs. When you or your family do come to sell the house, SBS Bank will be repaid the amount owed on the loan. The balance is available to you or your estate.

maximum loan ratio

To protect you and your family there’s a maximum percentage of the value of the house you can borrow, from 5% at age 60 to 30% at age 80, to a maximum of 50%. So there will always be some equity behind you in those later years, and something to hand down.

equity protection

The Equity Protection option ensures inheritance protection for your beneficiaries by guaranteeing a proportion of the value of the home is set aside for you or your beneficiaries, no matter what repayments are required at the end of the loan or movements in the value of the home.


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important information

The information contained in this brochure does not take into account your individual circumstances and is not personalized financial advice. You should seek independent legal and financial advice before you make any decision to take out a retirement loan ('SBS Advance'). Specific credit and eligibility criteria along with Standard Contact Terms for SBS Advance Loans apply. $895 Loan Application Fee and $295 Lender Documentation Fee apply, additional Advance Fees and Charges may apply. 

 **** In the event of a default in payment on your loan and while the default continues you must pay interest at the Default Interest Rate on the overdue amount.

 

 
A copy of the current Southland Building Society (SBS Bank) Disclosure Statement along with our Term Investment Terms & Conditions and QFE Adviser Disclosure Statement are available on request and free of charge from any branch or agency of SBS Bank or on this website
© Southland Building Society, 2016