Mariner moves into reverse mortgages
A GROWING cohort of older Australians without adequate savings has spurred Mariner Financial to join the burgeoning reverse mortgage market, offering retirees the opportunity to borrow up to $1 million against the value of their home.
The move by Mariner, which has traditionally focused on pension and bond-related products, was inspired by the growing swell of older Australians who were looking for ways to help fund their retirement, general manager George Lucas said.
Reverse mortgages are a type of equity release product that allows retirees to borrow against the value of their home.
Mariner would allow people over 60 to borrow between 15 and 45 per cent of the value of their home, depending on their age, to a maximum of $1 million.
“Most people have been told to spend their lives paying off their homes. Particularly if you are a low-income earner, all of your wealth is caught up in that house. This is a way of accessing that wealth,” Lucas said.
While the reverse mortgage market is only in its infancy, experts are forecasting rapid growth, with a recent Trowbridge Deloitte report predicted it would grow from $1 billion to at least $7 billion in the next few years.
A typical client for reverse mortgage providers would be in their 60s or 70s, who has little saved in super, with a home worth around $500,000 to $600,000, according to Lucas.
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