Concerns over reverse mortgage complexities surge | Australian Markets

Older Australians are discovering it more and more troublesome to navigate the reverse mortgage market in accordance with new analysis and enquiry information from national brokerage, Seniors First.

The reverse mortgage broker mentioned it had seen a 300 per cent increase within the quantity of enquiries obtained from Australians over the age of 60 up to now two years, with probably the most common issues raised together with value of residing pressures, product misconceptions and a lack of entry to high quality info.

This comes as new analysis from Seniors First confirmed there have been over 150 “points of difference” within the reverse mortgage choices from Australia’s prime 4 lenders, various throughout eligibility standards, loan options, loan quantities, complete charges and prices, and lender insurance policies.

“The reverse mortgage landscape in Australia is more complex than ever,” Darren Moffatt, CEO of Seniors First, mentioned.

“Our analysis uncovered over 150 variables throughout simply 4 lenders. That stage of complexity is overwhelming for a lot of over-60s who’re merely making an attempt to entry the equity of their houses for money, with out making a expensive mistake.

“From variations in drawdown limits and rates of interest, to guidelines round property varieties and age-based loan eligibility — it’s a minefield.

“For example, one lender might impose restrictions around the cash reserve feature that another doesn’t, or they might scale back the available loan amount based on property type or location.”

Moffatt mentioned the provision of clear and detailed details about reverse mortgages has not stored up with the product’s reputation amongst older Australians, marking a clear divide in ranges of financial confidence and uncertainty.

“This isn’t a one-size-fits-all loan. Unless you’re a specialist broker, comparing reverse mortgages is almost impossible because most of the eligibility criteria is not public,” Moffatt mentioned.

“Retirees need personalised support from people who know the ‘hidden’ rules — not a generic sales pitch. That’s where specialist brokers like Seniors First can make a real difference.”