Reverse mortgage market hits $3bn
By
Adam Smith
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26/05/2011 3:30:00 AM
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The market for reverse mortgages has hit $3bn according to a new report.
The Deloitte report, commissioned by SEQUAL, shows that as of 31 December the Australian reverse mortgage market was comprised of more than 41,000 loans with total outstanding funding of $3bn. The total represents 11% growth in the market from 31 December 2009.
Deloitte partner James Hickey said the reverse mortgage market has recovered from its lows during the GFC, though it has yet to return to its pre-GFC peak.
"Nevertheless, there remains gradual recovery in growth which is encouraging," Hickey said.
SEQUAL CEO Kevin Conlon said reverse mortgages may continue to grow in popularity as a new generation moves toward retirement.
"It appears that attitudes towards retirement funding are changing. As Baby Boomers approach retirement, equity release strategies are increasingly seen as a useful option to access the wealth stored in their home in order to meet the challenge of living longer and living well," he said.
Related stories:
Government may support reverse mortgages
ASIC to focus on advice to the aged
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