Reverse mortgage market shows recovery
By
Andrea Cornish
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31/05/2010 12:00:00 AM
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The latest study on the reverse mortgage market in Australia has revealed growing appetite for equity release products.
The market reached $2.7bn as of 31 December 2009 – an increase of almost 4% in the six months from 30 June 2009 and 9% growth in the 12 months from 31 December 2008.
James Hickey, Deloitte Actuaries and Consultants partner who led the study said that there were more than 2,665 new reverse mortgages written in the second half of 2009. “This was up on the same period in 2008,” he said.
Also the size of each loan is growing – from $51,148 in December 2005 when SEQUAL initiated the first study, to the current $70,000 as at 31 Dec 2009.
Hickey noted that the settlement figures for the second half of 2009 of $141m were level with the same period in 2008.
“It is interesting to see that, following the dip in the settlement figures in the first half of 2009 to $122m, settlements have begun to move back up to be on par with the 2008 numbers. This gradual recovery in growth appears to reflect the cautious optimism of the economy in general,” he said.
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