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Reverse mortgage body pleads for government intervention

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Australian Broker | 18 Jul 2014, 07:18 AM Agree 0
An industry lobby has called on the government to step up its support of the reverse mortgage market as Australia's population ages
  • BRIAN | 18 Jul 2014, 10:35 AM Agree 0
    I have already made comment to Tony Abbott and copied to Clive Palmer yesterday about this. Government has to relax and allow seniors to enjoy retirement by releasing up to 60% of property value - and get Centrelink, who seem to be taking advantage of equity release to stop pension payments, off their backs
  • SKEPTIKAL | 18 Jul 2014, 11:50 AM Agree 0
    I agree - if I was on a limited income like an Aged Pension and had a house worth ANY AMOUNT $, I would want to access the equity in order to live a full and happy retirement.
  • Greg R | 18 Jul 2014, 12:49 PM Agree 0
    For older Australians who may never have had a chance to have superannuation, their home is their superannuation and they need a realistic ability to access it. It is tough living on a subsistence pension, especially as a single. It is ASIC under the guise of protecting consumers that are making it harder on all providers to operate in this market, they have dried up the ability for a 60 year old to access funds via a RM and made it difficult for an over 55 to borrow under a normal mortgage.

    Lenders need to know they will get a reasonable return for the risk of not receiving regular payments, so the concept of 60% LVR is unrealistic, however the long term nature of a RM would suit a superfund ideally. It would not be difficult to have properties 'valued' each year based on a RPData type value so it would be consistent.
    I certainly agree with the lack of knowledge most Centrelink people have and what they portray to pensioners, FIS officer know but the average call centre person has no idea and just sprouts doom and gloom and pension payments implications.
  • Maria Rigoni | 21 Jul 2014, 03:58 PM Agree 0
    Again we see consequences of the Failure of Financial advice (FOFA) legislation.
    The legislation is not there to protect everyday people it is there to pander to the whims of the finance industry giants.
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