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Older Australians stuck in mortgage debt

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Australian Broker | 23 Jun 2016, 07:26 AM Agree 0
The number of Australians aged 65 years with a mortgage has risen by more than a quarter in the past three years, new research has revealed
  • Really? | 23 Jun 2016, 09:02 AM Agree 0
    You can't retire now until 70, so it is a result that was expected.
  • SEQ Broker | 23 Jun 2016, 11:17 AM Agree 0
    To be expected, however,

    $128k mortgage would translate into something like $650 per month if re-ammortised over a 30 year term. Given that this amount is less than half - more like a third of what they would pay for rental if they were forced to sell, surely there is a product out there to let them do this? The NCCP and responsible lending says no, they cant pay off their mortgage because they have no real income. (no sane person calls the pension an income!); So they are forced to sell, relinquishing the asset and now causing their residence to cost them three times the amount it could have been.

    To be fair, I don't have reverse mortgage qualifications and would pass this kind of business to someone who does. Perhaps one of those people can make a note on how its done and how it is NCCP Compliant to do co - if it can be done.
  • Reverse Mortgage Finance Solutions | 23 Jun 2016, 02:43 PM Agree 0
    Would be interested to see the basis of the data, including what the 28% represents in actual numbers, particularly with more people working past 65
    Those entering retirement are also considering lump sum drawdowns from super to pay out existing mortgages.
    Finally do these figures include reverse mortgage borrowers.
  • Scott Beattie | 24 Jun 2016, 09:45 AM Agree 0
    It's an interesting point - so, someone retires and they are on a lender that say charges 5 or more %, you can refinance them to save them $ on repayments, they have never missed a beat and it's cheaper for them to have a mortgage rather than rent, but they have to stay with their higher charging lender as they have no choice.
    I guess that is an unintended consequence of the NCCP.
  • mhana | 28 Jun 2016, 09:39 PM Agree 0
    Much rather help an older client keep their existing property or even purchase their first at 55 instead of subjecting them to paying rent. There are a few lenders who don't have age restrictions nor do they impose loan terms based on age. Liberty is really good at these types of applications.
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