More ASF news

by Darren Moffatt 23 April 2008

In addition on April 17, ASF announced that they would suspend all new lending. A notice from Managing Director John Thomas said: “While ASF does not source its funding from the global capital markets it is nevertheless still indirectly impacted by the turmoil and this directs us to adopt and implement a more conservative approach […]

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Big changes at ASF

by Darren Moffatt 23 April 2008

ASF have recently announced that they have suspended a number of product offerings indefinitely. They will no longer be offering their ’50’s Plus’ product, where borrowers under 60 can still access funding as long as they service the interest until they turn 60. There is still one Australian lender who will do reverse mortgage for people […]

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What properties can be used as security?

by Darren Moffatt 22 April 2008

Reverse mortgage lenders in Australia require that the security property for a loan is a residential house. Although some lenders will accept investment properties and holiday houses, most only accept the main owner occupied residence of the borrower(s). Rural properties greater than 10 hectares (25 acres) are usually not acceptable, nor are commercial or industrial premises. One […]

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Rates on the way down soon?

by Darren Moffatt 14 April 2008

New data just released is showing signs housing finance levels are finally responding to higher interest rates, with the number of home loans for owner-occupiers falling by 5.9% in February (WA topped the list with a 12% fall). This was the biggest fall since the housing briefly popped back in 2004.  Most of the weakness was in lending to […]

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What happens to my reverse mortgage if house prices fall?

by Darren Moffatt 9 April 2008

There’s been a lot in the media today about the prospect of house prices falling in Sydney and other parts of Australia by up to 25% over the next couple of years due to the global credit crunch and possibility of recession. Although no one knows exactly how this will turn out, I think 25% […]

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Industry must do better at educating seniors

by Darren Moffatt 8 April 2008

A recent study conducted by SEQUAL, It’s on the house, showed that although 78% of people over 60 had heard of reverse mortgages, only 40% correctly understood how they worked. In fact, the study showed 28% of seniors held the incorrect belief that a reverse mortgage involved selling a portion of the home.  This is probably at […]

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Bluestone to grow reverse mortgage business

by Darren Moffatt 7 April 2008

After recently downsizing their conventional and non-conforming home loan business as a result of the credit crunch, Bluestone have made plans to expand their reverse mortgage business. They have identified this sector as having particularly strong growth prospects over the coming years. Bluestone will attempt to increase distribution of its reverse mortgage product, EQUITYtap, by making it compulsory for mortgage […]

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Fixed or variable interest?

by Darren Moffatt 3 April 2008

This is a very common question at the moment given the current turbulence in financial markets. Whilst this is an individual choice, there are a couple of key points to consider: Don’t fix your loan for too long if you think there may be a chance you could sell or pay the loan out early […]

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Good news: rates on hold for now

by Darren Moffatt 2 April 2008

Today the Reserve Bank decided to leave rates on hold, after previous increases in February and March. This is good news for consumers, and comments from the RBA governor Glenn Stevens indicate the economy is finally slowing with inflation also easing. Most market analysts predict that there is only a 7% chance of a rate increase next […]

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Legal advice is a ‘must do’

by Darren Moffatt 31 March 2008

All reputable equity release lenders will insist that you obtain independent legal advice as part of the transaction. Indeed, you will not receive any funds until advice has been signed-off by your solicitor. This is of course a good thing: it protects you from potentially entering into an agreement that you don’t understand. All SEQUAL lenders abide […]

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