Bluestone Equity Release expands into NZ

mortgage/interest-rates/retirement-savings/government/chief-executive/

23 October 2006
| By Liam Egan |

Reverse mortgage operation Bluestone Equity Release has expanded into New Zealand, backed by funding from Westpac Institutional Bank.

The move across the Tasman has been motivated by commissioned research estimating that the rapidly growing New Zealand market will reach $200 million in 2007.

The Trowbridge Deloitte research reveals retirees have a “substantial need for quality reverse mortgage products”, according to Bluestone chief executive Peter McGuinness.

“There is more than $71 billion tied up in homes owned by the country’s over-60s, yet many will find themselves inadequately funded as living costs rise and life expectancy climbs.”

The research found retirees have less than $60,000 in retirement savings per household on average, well short of the estimated $300,000 to $400,000 required to secure a fully funded retirement.

It also estimated that the Government’s superannuation would provide just 50 per cent of the income required to support an acceptable standard of living in retirement.

Bluestone’s emergence will also “significantly broaden the range of products available in a market that is currently dominated by one player”, McGuinness said.

He added that Bluestone’s key point of difference would be to “provide customers with certainty around the funds being released from their home”.

“For the first time, for example, NZ retirees have access to a lifetime fixed or capped interest rate on their reverse mortgage, providing protection against long-term volatility in interest rates.

“These features ensure clients have the security of knowing the maximum balance of their loan in 10, 20 or 30 years time, providing more certainty around estate planning.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 1 day ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS