EXCLUSIVE INTERVIEW: NICRI director of the Equity Release and Reverse Mortgage Information Service (ERRMIS)

by Darren Moffatt 12 June 2009

Reverse Mortgage Watch has written about the new government reverse mortgage information service, ERRMIS, before . This is a free service provided through the National Information Centre on Retirement Investments (NICRI) that’s designed to help Australian seniors make more informed choices about equity release finance. In a coup for Reverse Mortgage Watch, we’re delighted to bring you an exclusive interview [...]

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Reverse mortgage industry seeks government funding

by Darren Moffatt 11 June 2009

In order to support competition in the Australian mortgage market, late last year the federal government introduced $8 billion of funding for non-bank lenders and small banks under a scheme known as “RMBS”. This  scheme is designed to assist lenders who predominantly source their funds from the wholesale credit markets that have largely dried up as [...]

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How to use FIDO reverse mortgage calculator

by Darren Moffatt 3 June 2009

When contemplating a reverse mortgage it is good practice to do ‘equity projections’ using the FIDO reverse mortgage calculator.
This FIDO reverse mortgage calculator is provided by the consumer arm of the Australian Securities and Investments Commission (ASIC), and is a highly useful tool for working out how much your reverse mortgage might be worth [...]

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Renovations most popular use for reverse mortgages

by Darren Moffatt 3 June 2009

A new study by Royal Bank of Scotland has found that a third of all reverse mortgage funds are used for home renovations.
“Forget over-the-top purchases, these are asset-rich/cash-poor people simply trying to make ends meet,” says RBS Reverse Mortgages, head of reverse mortgages, Martin Lynch. More than 32% used the payments for renovations, while 18% [...]

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What does the budget mean for Australian seniors?

by Darren Moffatt 25 May 2009

The recent Australian federal budget is clearly good news for those who have been doing toughest: single aged pensioners. Although the $33 per week increase is relatively modest, it will still make a positive difference to the lives of hundreds of thousands of people.
The implications for self-funded retirees and part pensioners are less positive, however. [...]

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Seniors now required to work longer

by Darren Moffatt 25 May 2009

The Federal Government also announced in the budget that the retirement age will be gradually increased to 67 years
Under changes to the pension age, the age at which people qualify will increase at a rate six months every two years, beginning in 2017 and reaching 67 years in 2023. The Government said the changes to [...]

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Government increases pension for some, but cuts for others

by Darren Moffatt 25 May 2009

In a much-anticipated move, The Federal Government recently announced an increase of $33 per week in the single aged pension. The full pension for couples was also increased by $10 per week. Both changes become effective September 20th, 2009.
Although these budget initiatives are welcome and long overdue, the news is not all good for retirees.
Part pensioners [...]

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Reverse mortgage industry hits $2.5 billion

by Darren Moffatt 6 May 2009

On Friday May 1st, the Senior Australian Equity Release Association of Lenders (SEQUAL), announced the results of its biannual report on the reverse mortgage industry. According to the report the market is now worth more than $2.5 billion. This represents an increase of 23% over the past 12 months, and there are now more than 37,500 Australian [...]

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Which banks are best for reverse mortgage?

by Darren Moffatt 30 April 2009

Not all banks provide reverse mortgages, and of those that do, there is a big difference between the cost and features of the products they provide.
Our recent reverse mortgage survey found that on a loan of $100,000, there is difference of $26,000 in total interest and fees over a twenty year period, between the cheapest and most expensive reverse mortgages [...]

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Interest rates hit 49 year low, but are they set to climb again?

by Darren Moffatt 30 April 2009

With the most recent Reserve Bank interest rate cut announced earlier in the month, Australian interest rates are now at a record 49 year low.
This is great news for borrowers, and particularly for seniors who are considering a reverse mortgage.  
However, most of the major banks have recently begun to increase their medium and long-term fixed [...]

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