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Government to support reverse mortgages, but supply scarce

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Australian Broker | 11 Apr 2012, 05:00 AM Agree 0
The government appears set to lend its support to the reverse mortgage market, but the industry may not be able to meet an influx of demand
  • ozboy | 11 Apr 2012, 11:20 AM Agree 0
    These types of loans are great for some people some of the time, used well they are very effective. Just like any other financial product available.
  • Country Broker | 11 Apr 2012, 11:38 AM Agree 0
    There are banks and companies who do these deal , supply is not scarce , used well they are an effective tool to help a sector of the market who need it .
  • Country Broker | 11 Apr 2012, 11:38 AM Agree 0
    There are banks and companies who do these deal , supply is not scarce , used well they are an effective tool to help a sector of the market who need it .
  • Phil | 11 Apr 2012, 11:55 AM Agree 0
    Whilst they are a great idea, I'm not sure that reverse mortgages and the NCCP quite go "hand in hand".
    The biggest problem is that you are dealing with older people who may not have all their faculties and could well be heading towards dementia/senility (or worse) and you are signing them up for a new mortgage loan with no repayments? The loans are small and the borrowers can have trouble making up their minds and can also be in conflict with their children over the debt. No wonder a lot of lenders have left the market. Someone is bound to try the "you knew they didn't understand what they were getting into when you gave them the loan" argument to not repay the loan. An NCCP minefield for brokers?
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