RBS stops new reverse mortgage lending

by Darren Moffatt 10 June 2010

The most popular reverse mortgage lender in Australia over the last few years, Royal Bank of Scotland, recently announced it has suspended all new lending pending a trade sale of the reverse mortgage business. Existing commitments will continue to be honoured and current RBS reverse mortgage borrowers will not be affected.  Following a strategic review of […]

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Downsize vs reverse mortgage

by Darren Moffatt 9 April 2010

For many Australian 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 […]

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Why legal advice is essential for a reverse mortgage

by Darren Moffatt 8 April 2010

All reputable Australian 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 […]

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Reverse mortgage line of credit – how it works

by Darren Moffatt 5 April 2010

Unless you need a lump sum of cash for a specific reason (eg; paying out credit cards or to fund home improvements), then a reverse mortgage line of credit will often be the best way for senior Australians to access the money from their reverse mortgage. How does it work? A reverse mortgage line of credit […]

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Homesafe Solutions joins SEQUAL

by Darren Moffatt 22 February 2010

In a welcome development for the Australian equity release industry, SEQUAL has now become the umbrella body for equity release rather than just an association of lenders. As a result of this change Homesafe Solutions has become a member of SEQUAL. Homesafe Solutions, Bendigo and Adelaide Bank, provide an alternative to reverse mortgages called Debt Free Equity Release. This […]

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Superannuation hole leaves seniors at risk

by Darren Moffatt 3 February 2010

According to the SMH, superannuation savings are woefully inadequate and will leave Australians nearly $700 billion short of what is needed to live decently in retirement, according to new research. The Investment and Financial Services Association has calculated that by the middle of 2008 Australians had a retirement ”savings gap” of $695 billion, a dramatic increase […]

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Reverse mortgage popularity peaks in U.S

by Darren Moffatt 1 February 2010

According to Reverse Mortgage Daily, a U.S leading blog on reverse mortgages, the ‘penetration rate’ for reverse mortgages has just exceeded 2% for the first time. This means that of all households in America that are eligible, more than 2 per cent have now established a reverse mortgage to help fund their retirement. By comparison in Australia, where our […]

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Minimum age for reverse mortgages now 63

by Darren Moffatt 1 December 2009

In an unexpected move, the Royal Bank of Scotland (RBS) recently increased it’s minimum age from 60 to 65 years, effective immediately. With only one lender left offering reverse mortgages from 63 years (all others are now 65), this now means that Australian seniors must wait longer to access their home equity. What were the reasons […]

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Reverse mortgages growing in popularity

by Darren Moffatt 16 October 2009

The number of reverse mortgages in Australia has increased, a new study has found. According to the report by Deloitte Actuaries and Consultants, the local reverse mortgage market grew by 13 per cent over the last financial year, measured by outstanding balances after 4,950 new borrowers entered the market. The average age of the reverse […]

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Seniors lose pension increase to higher rents

by Darren Moffatt 8 October 2009

The Sydney Morning Herald recently reported that the NSW Government is about to strip the elderly of a portion of their hard-won pension increases, defying the wishes of the Prime Minister. NSW and other states will raise public housing rents for single aged-care pensioners in tandem with their $30-a-week pension increase. It means that, from […]

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