After the recent announcement that the final major bank and its subsidiary will no longer offer reverse mortgages, an industry association is calling on brokers to fill the void.
Commonwealth Bank of Australia and Bankwest will be dropping their reverse mortgage products from 1 January 2019.
The Finance Brokers Association of Australia (FBAA) said this was an opportunity for brokers who understand the offering and the needs of their clients.
Peter White, who is now operating under the new title managing director of the FBAA, said banks had just “put reverse mortgages in the too hard basket”.
He added, “They have become almost scary for some because of the well-publicised failures, but often those failures are because banks have been negligent in their assessment of the needs of older Australians.”
Earlier this year the FBAA said there should be mandatory training and accreditation for anyone offering reverse mortgages to ensure borrowers receive the right advice and understand the long-term implications and opportunities.
White said while the FBAA introduced a leading-edge course that helps educate brokers about the product, it’s time for all brokers to consider this market.