Reverse mortgage market reaches $2.6b

Font size :

Australia's reverse mortgage market is now valued at $2.6b after recording a growth rate of 5% in the six months to 30 June 2009, a new study by Deloitte Actuaries and Consultants has revealed.

The Deloitte SEQUAL Reverse Mortgage Study showed that the market consisted of more than 38,000 reverse mortgage facilities at the end of six-month period.

According to James Hickey, the Deloitte Actuaries and Consultants partner who led the study, there were 2,350 new borrowers of reverse mortgages in the first half of 2009 compared with 2,600 in the second half of 2008.  He continued, "This shows that the product is still in demand by borrowers, albeit at a slower rate than in the previous six months."

Kevin Conlon, chief executive SEQUAL hailed the results of the Deloitte study "as testament to the fact that seniors equity release continues to emerge as a key retirement funding option". He added, "The sustained, albeit slower market growth over the last six months, demonstrates to us the important role equity release continues to play in assisting Australian seniors to face the challenge of funding their retirement."

The report revealed that most reverse mortgage business came from New South Wales (33%), with Queensland (16%), and Victoria (14%). NSW increased its share of new lending by almost 10% since 2008. 

 

 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Monday, Sep 25, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords