Cannex, one of the main ratings agencies for financial services in Australia has suspended its ratings of reverse mortgage products. As a result of the global financial crisis, eight lenders have stopped offering new loans in the past six months, and it is due to what it describes as this “temporary downturn in the reverse mortgage marketplace” that it has stopped analysing and rating reverse mortgage products for the moment.
As told to the SMH, the consumer demand for reverse mortgages remains strong and Cannex expects many lenders to re-enter the market when financial times improve. Currently there are still half a dozen lenders offering reverse mortgage products to senior Australians. For more info on the different equity release loan options, go here.
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This is going to be a tough year.
Fascinating article, well thought of and well written with some very good advice in!