To sell & downsize, or stay and release equity?

by Darren Moffatt 28 March 2008

For many retirees on limited funds, this becomes the big dilemma. In most states, the process of selling your home and downsizing to buy a smaller dwelling will cost $40-50,000 by the time you factor in stamp duty, agents fees and legal costs etc. In addition, many people are forced to re-locate to a new area, […]

Read the full article →

Avoid loans with monthly fees at all costs

by Darren Moffatt 27 March 2008

If you have an existing loan through one of the major banks, chances are you’re being charged a monthly fee of $10 or $12. This is an absolute scandal!   These fees will quickly attract interest and you’ll eventually be charged compounding interest on bank fees. Outrageous.  If you go with a lender who charges monthly fees […]

Read the full article →

What is ‘Protected Equity’?

by Darren Moffatt 26 March 2008

This is a special feature that many reverse mortgage lenders offer where you can effectively quarantine a portion of your equity for children or beneficiaries. By borrowing less than you are eligible for, you can ensure that your heirs will receive a pre-determined amount of the equity regardless of what happens to the loan balance […]

Read the full article →

Reduce reverse mortgage fees

by Darren Moffatt 25 March 2008

Some lenders run special promotions from time to time, waiving their set up costs in whole or in part. It’s a good idea to ask your broker to check for these specials so that you can minimise your upfront costs. If you are unsure if you qualify, or you would like to find out which lenders are currently waiving […]

Read the full article →

Current trends in reverse mortgages

by Darren Moffatt 24 March 2008

The recently released 2007 SEQUAL Report contains some interesting data on exactly how people are using their reverse mortgages: 1. 90% of new loans were taken as lump sums, and only 10% as an income stream. This figure is somewhat misleading as the ‘lump sum’ data also includes all loans taken wholly or partly as a ‘cash […]

Read the full article →

Australian reverse mortgage market hits $2 billion

by Darren Moffatt 24 March 2008

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 […]

Read the full article →

Can I pay an accommodation bond without selling?

by Darren Moffatt 20 March 2008

Many people don’t realise that these days it’s usually possible to pay an accommodation bond for entry into aged care without selling the family home. A few select lenders such as Bluestone & ABN Amro allow the  person going into care to borrow against their property via a reverse mortgage to pay for the accommodation bond. The house can […]

Read the full article →

Reverse mortgages as ‘line of credit’

by Darren Moffatt 19 March 2008

One of the most popular ways to borrow money via a reverse mortgages these days is a ‘line of credit’. This is where you establish a pre-approved limit, but you only draw on the funds as you need them. This is great for ‘rainy days’ and emergencies, and is usually a much more cost effective way […]

Read the full article →

Reverse mortgage training now mandatory for brokers

by Darren Moffatt 18 March 2008

As of April 1st, all mortgage brokers who offer reverse mortgages to senior borrowers must be accredited with the industry body, SEQUAL or they will face expulsion from the industry.  In a positive development for consumers and the industry, the Mortgage and Finance Association of Australia (MFAA) has ruled that mortgage brokers who have not completed the […]

Read the full article →

Macquarie Bank quits reverse mortgages

by Darren Moffatt 17 March 2008

In response to the recent credit drought in world debt capital markets, Macquarie Bank has announced it’s withdrawl from all mortgage origination, including reverse mortgages. Although some new business will continue to be written, it will be at vastly reduced volumes. You can read more about it here What does this mean for seniors and […]

Read the full article →

← Previous Entries

Next Entries →