Reverse mortgage rates at all time low

by Darren Moffatt 10 December 2008

With the latest official cut in interest rates on December 2nd, reverse mortgage rates have reached a near all-time low in Australia. Some lenders are now offering variable rates at just 7.65%. This is down from over 10.00% just a few short months ago. The good news is that Australian seniors can expect these rates to keep […]

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Equity release industry hits $2.3 billion

by Darren Moffatt 4 November 2008

The Australian Reverse Mortgage Industry body, SEQUAL, has released data for the six months to June 2008 which shows that there is now $2.3 billion in outstanding reverse mortgage loans. This represents 14% growth over the last 6 months, and 27% over the last 12 months. There were more than 3,500 new reverse mortgages written […]

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Reverse mortgage rate relief for Australian seniors

by Darren Moffatt 15 October 2008

In a surprise move, the Reserve Bank of Australia last week announced a 1.00% cut to the official cash rate in response to the worsening credit crisis. This is welcome news indeed for seniors who had previously seen their reverse mortgage interest rates nudge 11% in some cases. With the reverse mortgage banks and lenders passing […]

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Reverse mortgage lenders tighten the screws

by Darren Moffatt 7 October 2008

More bad news for seniors unfortunately. As if recent huge drops in the values of share portfolios and super funds owned by Australia seniors was not enough, reverse mortgage lending has now has also begun to feel the pinch. Last week reverse mortgage funds got harder to obtain for many people with the news that several prominent […]

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What does the U.S meltdown mean for reverse mortgages?

by Darren Moffatt 17 September 2008

The latest turmoil in the U.S to arise from the sub-prime crisis is likely to have some impact on the Australian reverse mortgage industry over the coming months. The collapse of Lehman Brothers and bailout of the largest American insurer, AIG, are serious signals that this crisis is not yet over. Whilst Australia’s banking system is very […]

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SEQUAL appoints new chairman

by Darren Moffatt 10 September 2008

It was announced yesterday that Mr Martin Lynch, director of reverse mortgages at ABN Amro, has been appointed Chairman of the Senior Australians Equity Release Association of Lenders (SEQUAL). Having previously served as Deputy Chairman, Mr Lynch will thrive in the new role according to SEQUAL CEO, Kevin Conlon. “Mr Lynch is well-placed to step up from […]

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Now a good time to reverse mortgage?

by Darren Moffatt 6 August 2008

With the recent publication of comments by the governor of the RBA, Glenn Stevens, it now seems highly likely that interest rates will be cut in September by at least 0.25%. Some have speculated that it could be as high as 0.50%, and that we may see rates fall by 2% over the next 12 […]

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Over Fifty Group exits reverse mortgages

by Darren Moffatt 24 July 2008

Over Fifty Group last week announced it’s exit from the Australian reverse mortgage industry, effective immediately. Although the credit crunch and the subsequent rising cost of funds was partly to blame,  their exit is probably mostly a function of mixed sentiment between previous management and shareholders over the long-term direction of the company. They have cited the […]

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Is a reverse mortgage right for me?

by Darren Moffatt 15 July 2008

This a question that an increasing number of people are beginning to ask themselves in the current economic climate. With the cost of living continuing to rise, and the prospect of any rise in the government aged pension looking very unlikely, more and more people are seriously considering equity release and reverse mortgage finance. If you own […]

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How to make your reverse mortgage work for you

by Darren Moffatt 9 July 2008

There are a couple of simple things you can do to ensure that your reverse mortgage loan is working for you as efficiently as possible: Draw the funds out slowly, or gradually over time. This will reduce the ultimate interest bill. With some lenders you can do this via monthly instalments paid directly into your […]

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