Today Tonight’s story on reverse mortgages last Thursday night was an opportunity squandered. For a show that claims to serve the interests of seniors and consumers generally, their segment on reverse mortgages was profoundly unhelpful.
This story was a golden opportunity to educate seniors on the pros and cons of reverse mortgages and how to release equity safely. Instead the program chose to scaremonger and portray reverse mortgages in an overwhelmingly negative way that will do little to help seniors currently struggling in the wake of the global financial crisis. The closing assertion by presenter Matt White that borrowing just 15 per cent of the property could erode all of the borrower’s equity in ten years, was spurious at best. It relies on assumptions, not disclosed in the program, of zero property growth and 12 per cent interest rates for the entire ten year period.
The real pity is that this sensationalist, poor journalism will put off some consumers who need it most.
Where was the fact that a senior borrower can draw as little as $300 per month to supplement their pension? Where was the fact that monthly fees charged by some lenders are to be avoided where ever possible as these themselves attract interest? A good specialist adviser, such as Seniors First, can properly educate senior borrowers about these issues, and more.
Members of the public who want to properly understand reverse mortgages can obtain a free copy of the Seniors First consumer report by download at www.seniorsfirst.com.au or by calling their office on 1300 745 745.
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