Seniors finance revolution catching on
Australian Seniors Finance, a niche mortgage provider, is the latest lender to offer a reverse mortgage. Commonwealth Bank, St George, Bluestone and two Western Australian credit unions already offer this style of loan. Banking monitors InfoChoice estimate that within a year all major and second-tier banks will offer reverse mortgages, a style of loan in which older home owners can borrow a modest sum and then only repay the loan when they sell their home or die. Denis Orrock, general manager of InfoChoice, said the spread of these loans was "a minor revolution. It's their money and they need it, but it could cause turmoil and upset if their children are counting on an inheritance." Orrock said banks limit how much people can borrow to between 20 and 35 per cent of the value of their property, depending on their age.
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OFM
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