Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
subscribe to our newsletter

Reverse mortgages to double as Baby Boomers tap property

Asset rich and cash poor Baby Boomers are expected to double the number of reverse mortgages within the next 10 years, according to a finance broker.

Diversifi’s Rose De Rossi says Baby Boomers will significantly accelerate the number of reverse mortgage loans in the next decade.

According to the latest Deloitte Reverse Mortgage report, approximately 16,000 reverse mortgages were written in 2005. This figure increased to around 40,000 in 2014.

Advertisement
Advertisement

In 2005, the loan book was close to $750 million, rising to more than $3.6 billion in 2015.

“Falling interest rates, the rising cost of living and current economic downturn are also driving Baby Boomers to use reverse mortgages. We are finding that older clients still hold debt and are not managing on their pension or savings,” Ms De Rossi said.

“Reverse mortgages offer many benefits including they improve cash flow, no repayments are required, quick access to equity is available, proof of income is not required, the interest rates are relatively low, they offer peace of mind in retirement, extra money is available for activities such as travel and they do not affect the pension unless the money is invested.”

[Related: $500bn opportunity in reverse mortgage market]

Reverse mortgages to double as Baby Boomers tap property
mortgagebusiness

Latest News

The chief executive of a major bank’s institutional arm has announced their retirement after more than 30 years in the sector. ...

The Reserve Bank governor is confident borrowers will manage higher mortgage repayments upon the expiry of deferral periods. ...

It would be “dangerously naive” to expect the operating environment to “go back to normal” once the COVID-19 crisis abates, APRA cha...

FROM THE WEB
podcast

LATEST PODCAST: Brokers continue to step up for clients

Do you expect COVID-19 to reduce or increase your business flows?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.