Fact sheets a winner for reverse mortgage borrowers

by Darren Moffatt on June 7, 2012

  • Sumo

Recently, as part of phase 2 of the National Consumer Credit Protection (NCCP) act, it became a requirement for lenders to issue ‘fact sheets’ on their loan products.

These fact sheets are short, easy-to-read documents that summarise the following:

  • key features of the loan product
  • all likely fees and charges that will apply
  • eligibility criteria
  • acceptable purposes
  • max & min loan size
  • types of interest rate options available
  • LVR (loan to value) ratios

In my view, these fact sheets are probably the most useful aspect of NCCP regulation for consumers. And they’re especially important for senior borrowers seeking to release equity through a reverse mortgage as they provide a clear, accessible picture of the reverse mortgage that they can then use to compare with other competing loan products.

All banks, lenders and mortgage brokers should be handing these out to prospective borrowers prior to application.

So if you intend to apply for a reverse mortgage, make sure you ask for the ‘fact sheet’ up front. If in doubt, feel free to email me for more information.

Regards, Darren

Leave a Comment

Previous post:

Next post: