Rise in Children seeking reverse mortgage information for their parents
30 June 2017
Back when Heartland Seniors Finance opened its doors in 2004, it was relatively common for children to talk their parents out of a reverse mortgage. Sometimes there was a good reason, like another option being available, however often it was self-interest due to a fear that their inheritance would be diminished.
Over the last ten years a lot of things have changed with reverse mortgages – products have been improved to offer greater flexibility and customer protection, and regulations have been introduced to further safeguard consumers.
One other change we have noticed here at Heartland Seniors Finance is the increase in children (or even grandchildren) enquiring about reverse mortgages for their parents. It is great to hear from children, researching on their parents behalf to see if a reverse mortgage can help them live a better retirement. They have probably seen first-hand that their parents are struggling to get by on the aged pension, often having to compromise their living standards, but are living in a valuable asset that they have worked hard for.
At Heartland, we believe a family discussion is a key part of the process in taking out a reverse mortgage. We actually get our customers to acknowledge that they have discussed the loan with their family and if they have chosen not to we ask them to attest to this (sometimes it is that they have no family or they consider it none of their business!!).
Back to the inheritance – any of our customers who took out a modest reverse mortgage in Melbourne or Sydney in the last ten years will be extremely happy. Their property has probably doubled in value, and while the loan would have increased as well, their equity will likely be significantly higher. Their children are probably happy as well!
Information provided is accurate as at 30 June 2017 and may change from time to time