Banksia collapse bad for senior borrowers

by Darren Moffatt on November 19, 2012

  • Sumo

As was reported in the mainstream press recently, non-bank lender Banksia has gone into voluntary administration and is no longer lending.

This is bad news for senior borrowers as Banksia was one of the very few new reverse mortgage lenders to emerge since the GFC cut a swathe through lender numbers in 2008. Although reverse mortgages were only a very small part of their lending, Banksia had been specialising in aged care, with a reverse mortgage product available to help fund accommodation bonds. This was generally regarded as a good product, and Banksia were members of the industry body SEQUAL.

Although the fall out for existing Banksia borrowers will probably be very limited (as opposed to investors), the loss of yet another reverse mortgage lender is a blow to seniors already struggling with few options for equity release.

The wait for more lenders in the Australian reverse mortgage market continues.

{ 2 comments… read them below or add one }

John Johnston November 21, 2012 at 1:16 pm

I had a very satisfactory arrangement with Banksia for a reverse mortgage if & when required. I am 85 years o.a. – home value $650,000.00 unemcumbed. Will the Govt.invisaged plan materialise? what/who do you suggest? thank U 4 your interest – john j.

John Johnston November 21, 2012 at 1:21 pm

I had a very satisfactory arrangement with Banksia for a reverse mortgage if & when required. I am 85 years o.a. – home value $650,000.00 unemcumbed. Will the Govt.invisaged plan materialise? what/who do you suggest? thank U 4 your interest – john j.

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