REP 59 Equity release products report
Released November 2005.
In the last year Australia has seen the rapid development of a range of ‘equity release’ products, where consumers can obtain current financial benefit by trading equity in their homes.
This report recommends:
- Consumers obtain independent legal and financial advice before entering into equity release arrangements.
- Federal, state and territory regulators monitor closely the development of the market, consumer complaints and any problems they point to and keep under review the adequacy of the regulatory structure to address them.
- Equity release products be considered in any review of the Uniform Consumer Credit Code and in the ongoing development of enhanced regulation of mortgage brokers.
- ASIC work with industry to promote best practice and identify and appropriately deal with risks for consumers.