The NSW Department of Fair Trading recently conducted an online consumer survey on reverse mortgages that provides an intriguing insight into the public understanding of these loans. Here is a cross section of the best questions and how people answered:
1) Are you aware of the availability of a credit product for retirees called a reverse mortgage?
Yes – 78% No – 22%
2) Have you ever taken out a reverse mortgage?
Yes – 3% No – 94% Other – 3%
3) Do you think that sometime in the future would you consider taking out a reverse mortgage?
Yes – 48% No – 50% Other – 2%
4) How did you hear about this product?
TV – 35%, Radio – 8%, Newspaper/Magazine – 30%, Website – 3%, Friend/Family – 10%, Mortgage Broker – 4%, Financial Adviser – 2%, Other – 8%
5) If you took out a reverse mortgage what would you use the money for? (Respondents were asked to select all that applied, hence percentages exceed 100%)
Living expenses – 42%, Holiday – 24%, Home repairs – 43%, Medical expenses – 33%, Car – 18%, Help family – 20%, Other – 5%.
Although the sample for this survey was small (only 300 took part), half were in the current eligible demographic for the reverse mortgages in that they were aged 55 years or older.
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What is a reverse mortgage?
i want to read an explanation of what it is… (i know that it is retirees lending money against their house which then comes out of their “estate” when they die to repay the bank loan) but i want to read some official document or explanation, please.
thank you
cjc.