Equity Release OZ alert to market failure.
Mismatch in downsizing needs of older Australians | Australian Ageing AgendaAustralian Ageing Agenda
Senior Australians utilise their homes more than official statistics indicate and fewer downsize that is commonly thought.
Refundable Accommodation Deposits (“RAD’s”) will be included in the means test. Consumers need to decide whether to sell their home or use Equity Release products to fund their entry to Residential Aged Care. But the Product List is very short!
There can be no doubt that better equity release products need to emerge so that Senior Australians have improved choices for accessing their housing wealth.
However, make no mistake, this is not an opportunity for Mortgage Brokers to make a “Quick Buck”! These transactions have a significant impact on consumers and they take time and effort to settle.
Whilst I welcome the announcement by DomaCom that they are working on a new Equity Release product, they will need to have proper regard for this market and some of the comments in this article concern me.
I am the immediate-past CEO of the industry body (SEQUAL) and recently worked with DomaCom to set up their practitioner accreditation program. I am not associated with this product and process.
Live Long… Live Well!