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The Reverse Mortgage Deed is a crucial document used in Australian financial transactions where property owners, typically aged 60 or older, seek to access the equity in their home while continuing to live there. The deed must comply with strict regulatory requirements under the National Consumer Credit Protection Act 2009 and the National Credit Code, including mandatory consumer protections and disclosure requirements. This document is essential when establishing a reverse mortgage facility, detailing the security arrangement, loan terms, compound interest calculations, and repayment triggers. It includes specific provisions protecting elderly borrowers, such as negative equity protection and guaranteed right of occupancy. The deed must be prepared with particular attention to clarity and transparency, given the complex nature of reverse mortgages and the vulnerable demographic they typically serve.

1. Parties: Identifies the lender and borrower(s), including their full legal names, addresses, and ACN/ABN for corporate entities

2. Background: Explains the context of the reverse mortgage, including confirmation of the borrower's ownership of the property and their desire to obtain a reverse mortgage loan

3. Definitions: Defines key terms used throughout the deed, including specific reverse mortgage concepts like 'Negative Equity Protection' and 'Total Amount Owing'

4. Loan Details: Specifies the initial advance, credit limit, interest rate, and any ongoing advance arrangements

5. Interest and Fees: Details how interest is calculated and compounded, applicable fees, and includes mandatory warnings about compound interest impact

6. Security: Describes the property being mortgaged and the nature of the security being granted

7. Borrower Protections: Outlines mandatory consumer protections including negative equity protection and the borrower's right to remain in the property

8. Repayment Triggers: Specifies events that trigger loan repayment, such as death, sale of property, or permanent vacation of property

9. Borrower Obligations: Lists ongoing obligations including property maintenance, insurance, and rates payments

10. Default and Enforcement: Defines events of default and the lender's enforcement rights

11. Guarantees and Warranties: Contains borrower representations about property ownership and their understanding of the reverse mortgage

12. General Provisions: Includes standard contractual provisions such as notices, governing law, and variation procedures