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Reverse mortgage market grows to $3.7 billion

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Australian Broker | 07 Sep 2015, 08:09 AM Agree 0
The market for reverse mortgages in Australia has grown to $3.7 billion, according to a new report, with brokers writing one in three new reverse mortgages
  • Broker | 07 Sep 2015, 10:45 AM Agree 0
    Given the average loan sizes and associated headaches, its not even worth the labour costs to submit the application via the broker channel. hence 69% go direct.
  • John Nelson | 07 Sep 2015, 05:19 PM Agree 0
    I would NEVER do this product!

    I worked at CBA and the word spread our local branch was doing them. We had almost the entire local lawn bowls club at the branch.

    The amount of work you put in for a $50k loan is ridiculous. Plus the fact you get angry calls from grandkids complaining that the bank is taking part of their inheritance just make these loans the most annoying on the market.
  • Harold Spencer | 08 Sep 2015, 12:34 PM Agree 0
    Written several of these loans and while the upfronts are low due to loan size, the ongoing trail can help make up for it. In relation to kids and the lawn bowls parade that's more how you manage the client than the product. Let's face it a branch never handles these things well.
  • Papery | 08 Sep 2015, 02:54 PM Agree 0
    Well said @ Harold. The product works well for the RIGHT client.
  • Peter Nelson | 09 Sep 2015, 05:09 PM Agree 0
    Harold you are wrong - I don't think it's worth your time. John Nelson was right - he has a great opinion on this subject.

    Just to clarify, no relation to John Nelson.
  • Reverse | 10 Sep 2015, 10:37 PM Agree 0
    Can't cover the cost of origination.
  • Harold Spencer | 11 Sep 2015, 01:00 PM Agree 0
    Well Peter thanks for your opinion and you know what an opinion is don't you?
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