Banks to fund aged care reverse mortgages?

by Darren Moffatt on February 6, 2012

  • Sumo

An interesting article appeared in the Sunday Telegraph this weekend.

It claimed that in response to the recent Productivity Commission report ┬árecommending that government establish a home equity release scheme to fund aged care costs, that “…a market-based lender is the more likely outcome than a government-backed scheme”.

Given the huge pressures already on federal government budget expenditure, it seems there may be a very limited appetite for government to also effectively become the dominant lender for aged care accommodation bonds.

In the report, Minister for Aged Care Mark Butler said: “As the Productivity Commission inquiry showed, reverse mortgages are being taken out … for a range of reasons – to pay for aged care, to pay for holidays, new cars and even motor homes to go travelling.

“We know that older Australians have worked hard to own their own home before retirement and if they choose to access the equity in their home, then they deserve to be adequately protected.

We already have some lenders in the market providing this service, but more choice for consumers would certainly be welcome.

For more information on current lenders, please email info@reversemortgagewatch.com.au

{ 2 comments… read them below or add one }

Clifford McCawley April 19, 2012 at 4:41 pm

Very badly needed. I care for a aged person, in serious debt, who could use this service and thus stay at home for a long time to come.

mohan February 19, 2013 at 2:22 pm

i totally agree that there should be more room to accommodate, good to see lots coming for our senior citizens.

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