65 yrs of age and upwards.
This depends on how much money you borrow and the length of the loan. The more you borrow,the less will be available in your estate. We activley work with you to make sure that the loan to value (LTV) does not exceed 60% of the value of your property.
Although the loan is intended to be up to 5 years-long, and no payments are required for the rest of your term period, you can choose to repay the loan at any point, earlier than ordinarily anticipated. There is no lock-in, so you can settle the loan early if you so choose.
Unlike a conventional mortgage, there is no need for you to take out life insurance in order to qualify for More2Life . However, you do need to take out building insurance on your property in order to protect you (and us) in case, for example, the property is destroyed in a fire. We will be able to assist you in obtaining life cover should you want it together with one of our affiliated preferred FSP’s.
Who insures the property is not important to us, however, it is important to us that your cover is adequate, and that our interest in the property is noted in the policy.
Interestingly, many of our customers have shown us their existing insurance policies, which are often “tied” to the banks that extend / used to extend conventional mortgages to our customers. These practices are now out-lawed by the National Credit Act, with the effect that our customers can now place their short-term insurance where they choose, often at significantly lower premiums!
Unless other arrangements have been made to repay the loan, the home must be sold on the borrower’s death or at the time that the borrower moves into permanent long-term care. Alternatively the remaning spouse can transfer the house in to his or her name and continue with the loan.
Yes, as long as your house has increased in value at around a minimum of 5% per annum then you should qualify for a further loan.
No, it is not. We are a ligitimate registered business and are not in the business to “steal peoples homes”. This product is for people that are asset rich but cash poor. If you want to come and visit us in our offices you are most welcome to at 202 Grove Exchange,Grove Avenue,Claremont,Cape Town.
We use either a desktop tool to value your property (Lightstone) ; or when required we use the services of a professional valuator whom will make an appointment and come to your house.
The interest charged on your loan will be between Prime plus 3 and prime plus 5 depending on your risk profile. Interest is charged on a compound basis. No monthly interest payments are required to be made.
A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you. However, unlike a traditional home equity loan or second mortgage, borrowers do not have to repay the loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage. You can also use a loan to purchase a primary residence if you are able to use cash on hand to pay the difference between the loan proceeds and the sales price plus closing costs for the property you are purchasing.
Free standing or sectional title homes. You need to live in the house as a primary residence, maintain your home and keep your rates and taxes up to date.
What ever is remaining in the equity of your property will be for your heirs. More2Life strives to make sure that at no point is more than 60% of your home is ever owed on your reverse mortgage.
The amount varies and depends on your age and the value of your property.
If there is more than one borrower, we use the youngest age, for example those married in Community of Property.
You must own a home, be at least 65, and have enough equity in your home. There are no medical requirements.
More2Life must conduct a financial assessment of every reverse mortgage borrower to ensure he or she has the financial capacity to continue paying mandatory obligations, such as property taxes and homeowner’s insurance, as stipulated in the Loan Agreement.
If More2Life determines that a borrower may not be able to keep up with property taxes and homeowner’s insurance payments, we may insist to set-aside a certain amount of funds from the loan to pay future charges.
You may qualify for a reverse mortgage even if you still owe money on an existing mortgage. We would settle your current mortgage and it would be added to your More2Life account.
Rejecting a Reverse Mortgage
Owing to the mandatory costs associated with a reverse mortgage, if you intend to leave your home within 2 to 3 years, there may be other cheaper options available. If you want to leave your home to your children, then you should consider other options, because in many cases, the home is sold to pay back a reverse mortgage.
Yes, it is your responsibility to ensure that your property taxes are paid in a timely manner. Failure to keep your property taxes current is considered a DEFAULT in the terms of your Loan Agreement and may be grounds for calling your loan due and payable.
All borrowers have passed away
All borrowers have sold the property
The property is no longer the principal residence of at least one borrower for reasons other than death
The borrower does not maintain the property as principal residence.
Rates taxes and/or insurance is not kept up to date.
The house is allowed to decay and deteriorate.
Yes. You can pay your reverse mortgage in full at any time during the term of your reverse mortgage.
The reverse mortgage is to be paid in full once it has been called due and payable. You and/or your estate must work closely with your loan servicer to ensure your reverse mortgage is paid in full in a timely manner. If arrangements to pay the reverse mortgage are not made with your loan servicer, then your loan servicer may proceed with foreclosure between 30 days and six months from when your loan has been called due and payable. If you or your estate are actively working to either refinance your property or sell your property so as to satisfy your reverse mortgage, then foreclosure maybe forestalled.