Govt lauds reverse mortgage industry body

by Darren Moffatt 6 October 2011

The assistant treasurer, Bill Shorten, recently tabled new ‘second phase’ National Consumer Credit Protection (NCCP) legislation to parliament. For reverse mortgages, the Bill includes: A no-negative-equity guarantee for reverse mortgages, so seniors can’t end up owing more to the lender than their home is worth Other protections and disclosure requirements to ensure consumers can use […]

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New aged care reverse mortgage lender?

by Darren Moffatt 25 August 2011

We hear along the industry grape vine that a new reverse mortgage lender, specialising in aged care and accommodation bonds, will emerge shortly. This is great news for Australians seeking to fund aged care without selling the family home, as reverse mortgage and equity release options for this are currently extremely limited. More news as it comes […]

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SEQUAL approach a winner for reverse mortgage reforms

by Darren Moffatt 10 August 2011

The recently announced reforms to reverse mortgages (as part of phase two of the NCCP) are to be applauded. By mandating that lenders provide a ‘No Negative Equity Guarantee’, all seniors can now feel comfortable that reverse mortgages are safe.  And by also ensuring that intermediaries such as brokers provide better disclosure of the possible financial consequences […]

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Government announces reverse mortgage reform

by Darren Moffatt 8 August 2011

What follows is the media statement released yesterday by Assistant Treasurer, Bill Shorten. Good news for senior Australians, but I will comment on this in more detail shortly in a separate post. Regards, Darren Older Australians planning to take out a ‘reverse mortgage’ on their home will be better protected against negative equity and other pitfalls as […]

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Reverse mortgage advice

by Darren Moffatt 3 August 2011

When establishing a reverse mortgage loan through a reputable lender or broker such as Seniors First, it will quickly become apparent that other advisers also have an important role to play. Although your SEQUAL accredited broker will manage the application process for you, depending on your circumstances and choice of lender, you will also need to consult with one or more […]

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Reverse mortgage market hits $3 billion

by Darren Moffatt 30 May 2011

Reverse mortgages continue to grow in popularity with Australian seniors, according to a new report. The Deloitte report, commissioned by SEQUAL, shows that as of 31 December 2010 the Australian reverse mortgage market was comprised of more than 41,000 loans with total outstanding funding of $3bn. The total represents 11% growth in the market from […]

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NSW seniors shun downsizing for reverse mortgages?

by Darren Moffatt 19 April 2011

As reported in the SMH, just 249 retirees have taken up the stamp duty-saving initiative of the former state government aimed at encouraging seniors to downsize into new homes. The empty nesters’ zero stamp duty scheme was unveiled in the last state budget to boost NSW home construction. Treasury forecast between 1000 and 2000 seniors would […]

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SEQUAL calls for government to support equity release

by Darren Moffatt 4 April 2011

A call for the asset rich to use equity release to fund their aged care needs is being debated at a series of public hearings conducted by the Productivity Commission. Responding to the “Caring for Older Australians” draft report, the peak equity release body (SEQUAL) argues that whilst older Australians should be encouraged to access […]

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Government to back equity release scheme?

by Darren Moffatt 24 January 2011

It now seems possible that the federal government may eventually participate in a senior’s equity release finance scheme. On Friday, the Productivity Commission released a draft report into the ailing aged care sector, Caring for Older Australians.  The report proposed many long-overdue reforms. They include: making accommodation bonds available as a payment option across all types of care (not just […]

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ASIC announces reverse mortgage regulation

by Darren Moffatt 20 December 2010

As reported in the Herald Sun, the $3 billion reverse mortgage industry is set for a major overhaul with new laws and tougher disclosure rules expected in the new year as phase two of credit regulation under NCCP, commences. The Federal Government plans to ban contracts which allow negative equity to build up on a reverse […]

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