Increasing Demand for Reverse Mortgages
12 September 2016
There has been a lot of coverage lately around the increasing demand for reverse mortgages including this article on Broker News: http://www.brokernews.com.au/news/breaking-news/baby-boomers-to-drive-reverse-mortgage-surge-222471.aspx
At Heartland Seniors Finance, Australia’s largest specialist reverse mortgage provider, we have seen a considerable increase in demand, with record volumes in July and August. With around 70% of the total wealth of Australian retirees tied up in the family home this increase in demand is unsurprising. In fact more and more retirees are thinking about what it might be like to have their home make payments back to them and are turning to reverse mortgages as a way to help manage their financial commitments. Added to this an ageing population, increasing property prices and increased indebtedness and we believe this trend will continue.
Senior people on limited incomes tell us of their problems in meeting repayments on conventional loans, seeing their valuable family homes deteriorate because they don’t have the money to carry out timely repairs, or simply struggling to make ends meet on the age pension.
In its simplest form, a reverse mortgage allows borrowers to access a portion of the equity in the home without the need to make regular mortgage repayments. The money released can be taken as a lump sum, regular payments, a line of credit or a combination of all three. Typically the loan is repaid when the house is sold or the homeowner passes.
The above article notes that the Mortgage and Finance Association of Australia (MFAA), expect that the next decade will see a doubling in reverse mortgages as the baby boomer generation looks to cash in on their assets.
Mortgage brokers are a highly valued channel for prospective reverse mortgage customers to discuss their needs, the options available and the most suitable loan structure. Brokers can be of particular value to customers, as they place emphasis on excellent service and creating a smooth process.
Heartland has access to brokers who specialise in reverse mortgage loans across Australia. If you would like to meet with an accredited specialist in person to discuss a Heartland Seniors Finance loan, simply give us a call on 1300 889 338 or email us at [email protected] and we can arrange this for you.
Information provided is accurate as at 12 September 2016 and may change from time to time