Reverse Mortgages and Older People

The demand for reverse mortgage products is expected to rise significantly over the next 25 years. As people are living longer, home owners may be willing to trade off housing equity for a level of financial security in retirement. The reverse mortgage market has gained considerable momentum in Australia. In 2008, there were 36 000 reverse mortgages in Australia. Both the number of loans and the size of these loans have increased. At the time of this review, there were seven SEQUAL (Senior Australians Equity Release Association of Lenders) accredited lenders, providing five reverse mortgage products. The variability of reverse mortgage products and the access to information regarding these products have implications for both consumers and governments, with take up potentially impacting on income support levels and demand for government aged care services.