REP 109 'All we have is this house' Report on consumer experiences with reverse mortgages
Consumer experiences with reverse mortgages
Released 21 November 2007.
Reverse mortgages are relatively new and complex products. This report captures the experiences of 29 borrowers in taking out and living with a reverse mortgage.
Their experiences together with ASIC’s broader work on reverse mortgages suggest that several factors can inhibit good consumer decision-making. These include a lack of familiarity with reverse mortgages, difficulties in estimating how much equity might be available at any future point in time, and a reluctance by consumers to consider the risk of declining health in future years and the impact this may have on their financial needs.