According to the annual industry report released last week, the demand for reverse mortgages in Australia continues to grow strongly. The industry body, SEQUAL, has just released the market figures for the 2007 year which show that outstanding reverse mortgage loans now exceed $2 billon.
A summary of the key points found in the report:
- 33,700 loans now outstanding amongst senior conumers
- Market growth for existing loans was 34% in the past 12 months
- The average loan size is now $60,000
The report also found that whilst the outlook remains strong, growth for new loans slowed in the second half of 2007. This was due to a combination of factors including the global credit crunch and political uncertainty surrounding the recent federal election.