Marguerite Taylor No Comments

There has been a lot of interest surrounding reverse mortgages lately. Much has been made in the media regarding Australia’s aging population and the most efficient ways those in this age range can ensure they have sufficient retirement income. To this end, the recent Financial System Inquiry recommended reverse mortgages as a means of simultaneously unlocking retirement income and benefitting the Australian financial sector in general.

Since the Global Financial Crisis, mortgage lending has increased significantly. Today, a huge amount of wealth is tied up in mortgages totaling some $1.3 trillion held by Australian banks. Reverse mortgages have also increased during this period, but pale in comparison, with a total of $2.9 billion. Many more people are opting for high risk or deposit only loans, when a reverse mortgage in Australia would free up the equity in their home with less risk and without forcing its sale.

Another great advantage of reverse mortgages is that there are numerous consumer protections in place. A provision of the National Consumer Credit Protection Act, for example, requires the use of standardised calculations for these loans. Moreover, banks are obliged to provide ‘no negative equity’ guarantees, which ensure the loan amount does not exceed the value of a property.

Reverse Mortgage Advice

There are, of course, alternatives to taking out a reverse mortgage in Australia. Some seniors, for example, may prefer to downsize their home. This may result in taxes and fees, but can also free up money for alternative investments. Perhaps the most important thing to remember with regard to retirement income, is that every situation is different and what may work brilliantly for one person may not be beneficial to the next. This is why it is vital to seek out expert help to ensure you get the best reverse mortgage advice and a retirement income that suits your circumstances and needs.

Reverse Mortgage Finance Solutions provide exactly these services and are highly regarded for their comprehensive and useful advice. Each advisor at Reverse Mortgage Finance Solutions is accredited, has a full working knowledge of the industry and takes a wide range of factors into account when advising individual customers.

Reverse mortgages are a great solution to the challenges that have arisen with Australia’s changing demographics. Freeing up house equity not only provides individuals with a consistent and reliable retirement income, but it is beneficial to the Australian economy in general.

Arrange for a Reverse Mortgage Finance Solutions advisor to visit you and take you through your options so you can make an informed decision and get the most out of your retirement income.

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