Optional Retirement Interest Only (ORIO)
The option to pay all or half of the loan’s interest each month in return for a discounted interest rate.
A smoother path to retirement
Our ORIO loans can help the over 60s transition from a traditional mortgage on their own terms. It is a reverse mortgage that eliminates – or limits – the effect of compound interest on the loan. It is designed to empower your clients to take control of their finances and make the transition to retirement.
Key benefits
- A retirement-ready mortgage that’s flexible to meet clients’ future needs
- Reduced interest rate reward for regular interest repayments
- A regular income is not required to qualify
- No risk of default, eviction or foreclosure if interest repayments are missed
How it works
When your client makes regular interest payments, a lower interest rate is applied. The loan's principal does not increase (ORIO 100) or grows at a lower rate (ORIO 50).
Our ORIO loans offers the key protections available to all reverse mortgages. Your client does not have to repay the principal until they choose to vacate their home. They have lifetime guaranteed occupancy and a no negative equity guarantee.
Should your client stop making interest repayments, they can remain in their home, but interest at the base rate will be added to the loan balance.
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Eligibility requirements
Age Criteria
The borrower must be aged 60 or older
Property Criteria
Owner-occupied residential property in eligible postcode, minimum value $600,000
Other requirements
No long-term income required