ASIC review of reverse mortgage lending
The Australian Securities & Investments Commission (ASIC) have today released a review of reverse mortgage lending in Australia.
ASIC have been working on the review for over a year and Heartland has co-operated with them throughout.
In ASIC’s release, Deputy Chair Peter Kell stated “reverse mortgage products can help many Australians achieve a better quality of life in retirement”.
This mirrors Heartland’s experience where we have assisted over 15,000 seniors live a more comfortable retirement with our reverse mortgage. This was also validated in a recent customer survey, where 96% of customers said that they would recommend Heartland to friends and family, and 94% would recommend taking out a reverse mortgage.
In the report ASIC also highlights the growing need for reverse mortgages, noting that research suggests that 83% of older Australians strongly prefer to ‘age in place’ and that Australia’s population is rapidly aging.
As part of the review, ASIC interviewed 30 borrowers. The report states that all “reported feeling satisfied that their reverse mortgage had enabled them to address their immediate financial objectives,” with borrowers interviewed indicating that a “reverse mortgage relieved the stress of finding ways to pay for current lifestyle expenses or larger expenses, such as maintaining a vehicle, refurbishing their home, or managing other debt.”
The report does outline several areas where ASIC would like to see improvements from lenders. These include a greater focus on long term needs and that lenders do more to detect and prevent elder abuse. Heartland is committed to detecting and preventing elder abuse, which you can read more about in our Elder Abuse Guide.
Heartland is also committed to ensuring that our customers make informed decisions and is very much aligned with ASIC in this respect. We have already made a number of changes since the review commenced and have agreed to participate in an ASIC working group to improve lending practices.
Overall, the report is very thorough, balanced and highlights the increasing need for the use of reverse mortgages as a form of equity release in Australia. Heartland aims to meet this increasing need with our award winning product, and knowledgeable team who are dedicated to helping Australian seniors live a more comfortable retirement.
The ASIC release is available here, with corresponding infographic .
If you have any questions, or would like to know more about reverse mortgages, please do not hesitate to contact our friendly team on 1300 889 338 or [email protected]. We are here to help you.
Information provided is accurate as at 28 August 2018 and may change from time to time.