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What is HomePlus?
HomePlus is a special type of loan that lets you benefit from the value, or ‘equity’ that has built up in your home without having to sell it. The loan uses your home as security to help release some of the money tied up in your home. HomePlus could help you whether you need the money for unexpected medical expenses, home renovations, or to visit family.
Who can apply?
HomePlus is suitable if you are 65 years or older, and are a New Zealand resident living in your own home.
Important to Note: There are some property types that usually won’t qualify for HomePlus, such as farms, lifestyle blocks, holiday homes, vacant land, retirement homes, leasehold property. All borrowers will need to be legal owners of the property and listed on the title and not in a trust or partnership.
How HomePlus works:
- How much you can borrow is based on the youngest applicant’s age and the value of your home. The amount you could borrow is limited to a set percentage of your home’s value.
- It’s your choice to transfer a lump sum or set up regular automatic payments as and when you need the money.
- Transfers can only be made to an ASB transaction account. Money can be transferred at your nearest ASB branch, calling 0800 803 806, using FastPhone on 0800 272 272 or going to FastNet Classic at http://www.asb.co.nz/
- Interest is charged on the amount you borrow, based on our HomePlus variable rate.
| Youngest applicants age at last birthday | Percentage of your home you are eligible to borrow | Minimum
loan value | Maximum
loan value subject to acceptable security |
| 65 | 15% | $10,000 | $150,000 |
| 70 | 20% | $10,000 | $200,000 |
| 75 | 25% | $10,000 | $250,000 |
| 80+ | 30% | $10,000 | $300,000 |
ASB's HomePlus loan criteria and fees apply. Loans for business purposes are excluded and are for New Zealand residential property only. Personal Banking terms and conditions apply. ASB’s current Disclosure Statement is available free of charge from any ASB branch. A low equity premium may apply.Rates and fees
Interest Rate | | |
| HomePlus variable rate | 7.25% p.a. |
Interest rates are subject to change at any time without notice. ASB’s Home Loan Criteria applies.
Fees & charges
There are some fees and charges that are involved in setting up and maintaining your HomePlus loan. These include:
| | |
Loan Processing Fee
$850 | This covers the cost of the comprehensive 6-step advice and application process with a HomePlus consultant, as well as the cost of ASB processing your application. This fee will be deducted from your HomePlus account once your loan account is set up. |
Registered Valuation Fee
(typically around $500) | The value of your home plays a large part in how much you can borrow. We require you to get an independent registered valuation before your loan is approved, which you will need to pay for. |
Independent Legal Fees
(typically around $1,000) | You will be required to obtain independent legal advice as part of the application process, which you will need to pay for. |
Alteration to borrowers or security held for the loan:
| Service | Fee |
| Top Up Fee to increase the amount of an existing home loan. | $150.00 |
| Copy of loan agreement or supporting documents. | $15.00 per item |
| LINZ search fee | $15.00 per title |
| Alterations to Security Fee | $200.00 |
Change Parties to Loan Agreement or Owners on a Title
(Urgent requests incur an additional fee of $25.00) | $100.00 |
Registrations Affecting Land Titles
(Urgent requests incur an additional fee of $25.00) | $100.00 |
Discharging your loan:
| Service | Fee |
| Release of Repaid Mortgage Fee | $50.00 |
Settlement statements Fee
(Urgent requests incur an additional fee of $25.00) | $100.00 |
Unpaid local body rates
If ASB has to collect unpaid rates on behalf of a local body council these fees will be applicable:
- Local body rates demand notice
- If we have to write to you due to failure to pay rates $50.00
- If we have to make a rates payment on your behalf $60.00
Loan default
If ASB has to write to you due to the failure to meet your home loan repayments you will be charged a $50.00 fee.
If you default on your loan and the deduction account is overdrawn or in excess of your approved limit, interest will be calculated daily on the overdrawn amount.
HomePlus loans are subject to specific lending criteria including a registered valuation of your property and you will be required to seek independent legal advice as part of the application process, both these additional fees you will need to pay. ASB may also require you to obtain further valuations during the life of your HomePlus loan, which you will need to pay.
All fees are subject to change. For a full list of the HomePlus service fees, download our Guide to Fees and Home Loans & Personal Loans - Guide to Fees. Copies are also available from your nearest ASB branch.
Loans for business purposes are excluded and are for New Zealand residential property only.
You will also need to have an ASB transaction account (like Omni or Streamline) to access your HomePlus loan.
Features
- No repayments: Unlike any other loan; you don’t need to make repayments; you can pay off the loan once you’ve sold your home. However, this means interest will add up over time and compound. In other words, every month interest is charged it is added to your loan which will increase and over time this will make a difference to the level of equity left in your home at the end of the loan. This can be a potential draw back for this type of loan so it’s important you think carefully about it.
- No Negative Equity Guarantee: We will guarantee that you won't have to repay more than the proceeds from the sale of your property. In other words, we’ll make sure you can’t go into negative equity (that is you owe more than what your home is worth).
- Equity Protect Option: We think it’s important that you have the option to protect some of your equity in your home, especially if you want to be able to leave something behind. That’s why with HomePlus you can choose to protect up to 50% of your equity.
- Lifetime Occupancy Guarantee: Your home will always be your home. So as the owner of the property you have the right to live in your home for your lifetime, regardless of the amount of the loan, accrued interest and the value of your property.
- 90-day ‘cooling off period’: It’s really important to us that you’re happy with your decision. That’s why you have up to 90-days to make sure HomePlus is right for you.
ASB’s No Negative Equity Guarantee, Equity Protect option and Lifetime Occupancy Guarantee are subject to the HomePlus loan terms and conditions.
How to apply
The application process for a HomePlus loan happens over at least three separate meetings with a dedicated HomePlus consultant. This allows us to get to know you,
assess your needs and ensure HomePlus is right for you.
To make an appointment with one of our consultants
