Baby boomers embrace Reverse Mortgage for retirement funding
It’s no secret that in recent years the retirement plans of the ‘baby boomer’ generation have increasingly faced unforeseen headwinds. According to the latest industry report from Deloitte it appears these challenges are driving a growing number of baby boomers to embrace to Reverse Mortgage for retirement funding.
Anecdotally this is not surprising, as here at Heartland we have seen our own volumes of Reverse Mortgage applications grow steadily. The baby boomer generation is a large group, made up of approximately 5.6 million Australians and more than 800 baby boomers turn 50 years old every day. It is expected that by 2030, all ‘baby boomers’ will be over 65 years old.
According to the research, Reverse Mortgage finance grew by a whopping $3.6bn in the past decade despite the slow in growth during the global financial crisis.
Other highlights to emerge from the report:
- The average loan size is now $92,000 – up from $86,000 in 2013
- The three top loan purposes are debt consolidation, ‘income stream’ & home improvements
- The average age of new borrowers is 75
- Aged care is an increasing area of use for reverse mortgage funds
What can you do?
If you belong to the ‘baby boomer generation’ and are actively planning your retirement, it’s never too early to consider your options. To learn more about Reverse Mortgages, you can download our complete guide here or talk to one of our Reverse Mortgage experts at 1300 889 338.
Information provided is accurate as at 08 March 2016 and may change from time to time