Retirees and financial planners are increasingly shifting from a “super-only” retirement plan to make equity in the family home start working for them through a Reverse Mortgage.
Recent Australian Government data shows demand for Reverse Mortgage loans through the Commonwealth’s Home Equity Access Scheme (HEAS) has grown 21 per cent in the past 12 months.
Australia’s leading reverse mortgage specialist and Seniors First CEO Darren Moffatt has launched a comprehensive online education hub to help Australians 55 years and older better understand Reverse Mortgages and make more informed decisions.
Mr Moffatt said the Seniors Equity Release Access Hub (SERAH) was a valuable financial tool for older Australians planning their retirement or needing to restructure to manage the worsening cost-of-living crisis.
“The rise in people searching online for information about Reverse Mortgages has skyrocketed by 62 per cent in the past six months,”
“The SERAH tool answers commonly asked questions, provides independently sourced information and advice on how to manage the process,” Mr Moffat said.
It also includes an easy-to-use Reverse Mortgages calculator and access to submit an online application.
Mr Moffatt said the top five key mistakes people make include:
- Not fully understanding what lender options are available
- Focussing only on short-term needs without considering longevity and estate planning
- Making fast decisions under emotional and/or financial stress
- Not working with a specialist Reverse Mortgage broker
- Missing loan structure opportunities to minimise reverse mortgage interest costs
A financial expert who specialises only in Reverse Mortgages knows how to balance the task of releasing home equity for cash while preserving as much future wealth and flexibility as possible.
Seniors First marked it’s 20 year milestone this week making it Australia’s largest and oldest Reverse Mortgage specialist in Australia.
“For many older Australians, their home is their biggest asset, and a Reverse Mortgage can be a practical way to access some of its value without needing to sell or downsize,” Mr Moffatt said.
“What we’ve learned over two decades is that the best outcomes happen when people take their time, understand their options, and get specialist advice early. That’s why we designed the SERAH tool.”
New data shows up to 93 per cent of older Australians now use the internet as a resource tool and figures from AustralianSuper reveals 81 per cent of older Australians access financial related products online at least once a week.
Seniors First has facilitated more than 6,500 reverse mortgage loans nationwide.
Mr Moffatt said the goal is to ensure retirees feel informed and supported when considering how to use home equity in retirement.
“We want all Australians to be able to feel confident in their options and how home equity can be used in a way that supports a more comfortable retirement,” he said.
