If a home equity release borrower lives longer than expected, if property prices depreciate significantly or in the event of significant ongoing increases in interest rates, the ultimate value of the outstanding loan could theoretically exceed the underlying value of the property extended as security for the home equity release loan, thereby leaving no equity in the home for the borrower or his / her beneficiaries. While this is a fairly alarmist statement, and we would hope that most borrowers would still have some equity left in their homes when their home equity release loans are eventually repaid, we can predict with absolute certainty that some of the equity in the borrower's home will be used up.     

SAHERPA accredited Supplier Members commit to providing assistance and information in order for potential borrowers to make informed decisions about the appropriateness of home equity release loans. We believe that one of the best ways to do this is to make tools available to consumers, thereby allowing them to input their personal details, with the tools then projecting different hypothetical loan outcomes such as:

          (i) What might my home be worth in a number of years?

          (ii) What might my loan accumulate to over a number of years?

          (iii) How much equity might be left in my home in a number of years, if I repay the loan at that point?

We cannot however provide these tools directly to consumers, as the outcomes differ vastly depending on the product-specific particulars of competing loan providers. It is therefore best for consumers to model different outcomes using the tools that are made available by credible loan providers themselves. Why not try them out?

Seniors' Finance's calculator for SF HELP, visit: http://www.seniorsfinance.co.za/Calculator/Parameters.aspx

More online calculators will be made available to you in future as and when SAHERPA accredits more Supplier Members.

                                        Please note that the results generated by the calculators are estimates

                               and contain assumptions that may not be borne out, which you need to understand.

                               SAHERPA takes no responsibility for any of the results generated by the calculators.