Reverse mortgage

Lump-sum loan

In addition to monthly payouts, the borrower may apply to borrow a lump-sum at the time of the initial loan application and/or at any time during the payment term for the following purposes:

  1. full repayment of the existing mortgage on the borrower’s property;
  2. major repairsor maintenance on the borrower’s property; or
  3. medical expenses.

Other purposes not listed above may be considered on a case-by-case basis.

When the borrower applies for a reverse mortgage, the bank will specify in the facility letter the maximum and minimum lump-sum that may be borrowed at the time of application. These maximum and minimum amounts will be reduced during the payment term.

Each time a lump-sumis borrowed, the monthly paymentis reduced.