Invest in Australia’s Lucrative Reverse Mortgage Portfolio and Give Back to Australian Seniors.
Reverse mortgage definition – is a credit facility that is typically secured against residential property. Reverse mortgages are a type of ‘equity release product’ as they allow borrowers to release the equity in their home without losing possession of the property. They are the only type of equity release product that are regulated as credit products under the National Credit Act.
At Sage Shield we have a determined focus to honour them, for us a worthy legacy. We enable access to a suitable fit for purpose, safe and customisable product to assist Australian retirees in a time this community needs it most. We are all about freedom of choice and about ensuring access to their own money for what they determine, they need. All in the safe knowledge access is deliverable under protective, regulatory guidance.
Our analysis shows the need for senior’s finance is moving extraordinarily quickly, today there are 5.5 million senior Australian homeowners that qualify for a reverse mortgage, this will increase to circa 7.5 million by 2030 and 9 million by 2040. From an international comparison perspective to just catch arguably the more compassionate and mature UK and US market penetration of equity release in retirement we would have to disburse over $300 Billion in seniors reverse mortgage settlements, immediately just to catch up. These countries honour the wishes of the domestic aged population enabling a 5% market penetration of the retiree equity release market, whilst Australia has faltered to an inadequate 1%.
More can always have been done for those we owe the most but finally today ongoing Government messaging and promotion of their own equity release offering in the Home Equity Access Scheme (HEAC). HEAC is also a factor in driving the normalisation of retirement funding from home equity. The scheme today contains greater disbursement flexibility and legislative consumer protection like the NNEP option, life time occupancy and the need for obligatory legal advice than before. HEAC disbursements are up 80% in 2023 verses 2022, this will continue in 2024 and beyond as the community accesses their funds to live more comfortably in what has been and inflationary and high interest rate economy.
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