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Disclaimer:
The following links provide access to a range of Media Reporting from a wide range of Media Sources.
SEQUAL provides this material on an information basis only. Whilst every effort is made to ensure that this material is accurate, SEQUAL does not accept responsibility for any error or omission. This material should not be relied upon as a basis for any financing or investment decision.
The
revolutionary financial product is called Homesafe Solutions - a world
first idea, which aims to be the only product on the market giving
homeowners access to their equity without financial risk.
"From
the point of view of the homeowner, they have the certainty of knowing
that they received the money today and they know the share that they
will always retain in the future", said the idea's developer, actuary
Peter Szabo.
Source: Today Tonight - 27 July 2010
Journalist: James Thomas
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Equity release and reverse mortgage producs are loans that are available to people aged 60 and over, who own their own home and who require access to the equity in their home. The reasons for needing to access home equity vary beteen individuals, but often include wanting to increase income levels, needing to pay for large expenses or wanting to make large purchases.
Although these types of products have been around for a number of years, many consumers don't know that they have access to free independent information to ensure they fully understand these products.
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Strong self-regulation of the reverse mortgage and equity release sector will mean an impending Government regulatory review will only be a "health check", according to SEQUAL.
The Government intitiated its second stage of reforms to consumer credit law this week with the release of its Phase Two Green Paper, which outlines options for enhancing the National Consumer Credit Law in areas that include the reverse mortgage sector.
Source: Broker News Online - 9 July 2010
Journalist: Ben Abbott
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The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, today announced the release of the Consumer Credit Reform Green Paper, National Credit Reform - Enhancing confidence and fairness in Australia's credit law, for public comment.
The release of Phase Two Green Paper builds upon the completion of Phase One, the commencement of the new National Consumer Credit Code on 1 July 2010.
"The Government has delivered Phase One of the consumer credit reforms by bringing together the different state and territory legislation on financial services into a single, standard, National Consumer Credit Law," Mr Bowen said.
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Phase two of the new consumer credit laws, due to come into effect next year, will include enhancements to the regulation and tailored disclosure of reverse mortgages.
Under the reforms, NICRI is calling for financial and legal advice to be made compulsory for reverse mortgage borrowers.
However, SEQUAL chief executive Kevin Conlon warns against heavy-handed regulation.
"Equity release is likely to emerge as a significant part of retirement funding and the current debate around advice and regulatory intervention needs to be carefully considered against that growing demand to ensure choices and legitimate strategies in retirement funding are not extinguished through . . . unnecessary regulation," he says.
Conlon says the industry should define the scope of advice that enables consumers to make informed decisions without burdening them with a default position of having to receive a full financial plan.
He also disputes any presumption that retirees are unable to make informed decisions about their financial affairs simply because they are past a certain age.
Source: The Australian Online - 7 July 2010
Journalist: Sara Rich
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There's another alternative to super or selling besides a reverse mortgage, where you re-mortgage your home, only with a twist.
Instead of making regular repayments, the interest is capitalised.
You get a lump sum upfront or a line of credit that you can draw down as you need the money and nothing goes out as interest repayments.
The mortgage is only paid back when you sell or move into a nursing home.
Ah, but the interest is compounding. Is it ever; by not making any repayments, the equity in your home falls every day.
There are shocking stories in Britain of home owners finishing up with negative equity - they owe more than the house is worth.
Since a reverse mortgage can be passed on to your estate, that mightn't worry you but the children won't be too happy.
The good news is it can't happen here.
All mainstream reverse-mortgage lenders belong to the Senior Australians Equity Release Association of Lenders (SEQUAL), which bans contracts permitting negative equity.
Source: The Sun Herald - 5 July 2001
Journalist: David Potts
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Both the National Information Centre (NICRI) and Senior Australians Equity Release Association (SEQUAL) are currently lobbying the Government to fund advice on reverse mortgages, but disagree on one major point.
NICRI has put itself forward as the sole body for providing legal and financial advice to prospective borrowers, while SEQUAL Chief, Kevin Conlon opposes such a service becoming exclusive to one agency.
"Lets not build barriers as to who can provide this advice. It shoud be available as widely as possible - where borrowers are," Conlon said.
While he supports every effort to deliver competent and affordable advice to seniors and strongly encourages the Government to fully fund NICRI, Conlon believes access to the aforementioned services should go beyond this agency.
Source: Money Management Online - 1 July 2010
Journalist:Milana Pokrajac
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Kevin Conlon, chief executive at the Senior Australians Equity Release (SEQUAL), said there's been a significant move away from ‘desire-based' expenditure to ‘needs-based' including topping up their overall income.
"People approaching retirement want to live well and they recognise their limited financial resources are going to be inadequate to meet that challenge," he said.
"It's that classic situation; asset rich, cash poor. The home is increasingly being considered a part of the planning process as a means to unlock the substantial wealth stored in property."
Source: Financial Standard - 22 June 2010
Journalist: Michael Hobbs
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Actuary Peter Szabo has come up with exactly the right product to put to much more effective use some of the trillions of dollars of 'dead money' sunk into our homes.
Indeed, I would go so far as to suggest it is a product exactly for these times as baby boomers start to retire, with for many if not most of them the family home as their single biggest retirement asset.
What is particularly appealing to me about Szabo's product is that it actually does three things.
Source: Heraldsun Online - 9 June 2010
Journalist: Terry McCrann
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The Government-funded National Information Centre on Retirement Investments (NICRI) has called on the Federal Government to fund an equity release information centre to provide general financial and legal advice to consumers seeking to access an equity release product such as a reverse mortgage.
NICRI chief executive Wendy Schilg said the service was an important consumer protection measure that would help retirees and pre-retirees avoid any traps and pitfalls that could arise from reverse mortgages.
Source: Money Management Online - 9 June 2010
Journalist: Chris Kennedy
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The Senior Australians Equity Release Association of Lenders (SEQUAL) is working with Treasury and industry organisations to develop cost-effective financial advice regarding reverse mortgages, according to its chief executive Kevin Conlon.
Speaking during the release of a SEQUAL/Deloitte survey on reverse mortgages last week, Conlon said there had been a reluctance in the past from consumers to seek out full financial advice regarding the use of reverse mortgages because of the costs
“I think the important work here is to determine whether there is a subset of a full financial plan that would be appropriate to these transactions and to scale it to these deals.”
Source: Money Management Online - 1 June 2010
Journalist: Benjamin Levy
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SEQUAL Chief Executive Kevin Conlon says the financial crisis has seen an even greater focus on people taking out loans to help fund the cost of living or to repay higher interest credit card debts.
"People have moved away from desire-based expenditure - overseas trips, purchasing holidays - to more needs-based expenditure," he said.
"Typically today we see home improvements and also in terms of topping up their regular income to ensure they can live well in retirement."
The report found there were about $2.7 billion in reverse mortgages outstanding in Australia and there are now about 39,000 households holding a reverse mortgage.
Source: ABC News Online - 28 May 2010
Journalist: Michael Janda
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SEQUAL Chief Executive Kevin Conlon said there had been a shift away from discretionary spending to necessity spending during the downturn. He said senior Australians had been delaying retirement until market conditions improved. "The baby boomers are going to hold up this market," Mr Conlon said. "It is inevitable that this market will grow, in my view."
Source: The Australian Online - 29 May 2010
Journalist: Sara Rich
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The growth of the reverse mortgages market in Australia has continued to slow down, according to new research by Deloitte Actuaries and Consultants.
The market grew 9 per cent last year, from $2.48 billion at the end of December 2008 to $2.71 billion at the end of 2009.
But settlements of new loans showed a slight uptick over the second half of 2009, growing from $122 million to $141 million in the first half of last year, an increase of 16 per cent.
"Hopefully this points to a re-emergence in demand for reverse mortgages," Deloitte Actuaries and Consultants partner James Hickey said Friday.
SEQUAL Chief Executive Kevin Conlon said without government support it would take some time before more non-bank reverse mortgage providers would come back into the market.
"It is still with some regret that having lobbied the government to consider the extension of their stimulus package - some $8 billion dollars committed to the forward market to stimulate a restart in the securitisation market - we weren't able to get the same support for the reverse mortgage market," Conlon said.
Source: Investor Daily - 31 May 2010
Journalist: Wouter Klijin
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The amount of money a person needs to have a happy retirement depends on a number of factors, including life expectancy and the age of retirement.
Statistics indicate that a significant portion of the Australian population retires before the age of 65 and as a result would potentially spend a long time in retirement, depending on their life expectancy.
Half of all women retiring at 55 can expect to spend at least 30.5 years in retirement. Recent longevity figures published by Rice Warner Actuaries show about 10 per cent of women now at retirment age can be expected to live to 100 or beyond, so many early retirements, for women at least, may last for over 40 years.
The challenge will be to fund a retirement of that duration and to fund it comfortably.
Source: IFA Magazine Issue 504
Author: Crissy De Manuele
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Reverse mortgage industry group Senior Australians Equity Release Association of Lenders (SEQUAL) says the average age of a reverse mortgage customer is 74.
"This reflects the fact that people who are new to retirement are not necessarily the demographic for the product, but people moving through retirement and recognising their financial resources are not sufficient to meet the challenge of living longer and the desire to live well,'' says SEQUAL chief executive Kevin Conlon.
The majority of lenders offering these products are SEQUAL members and guarantee the value of the mortgage will not exceed the value of the property, so regardless of how long a customer lives they will never have to repay to the bank more than the value of their home, he says.
"I would caution any consumer from considering products provided by other than SEQUAL members,'' he says.
Source: The Herald Sun Online - 3 May 2010
Journalist: Nhada Larkin
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Aged care facilities have come under fire lately with reports of mistreatment of residents and poor practices. This adds stress to the already challenging process of finding the best nursing home or hostel for loved ones who can no longer care for themselves at home.
While the system is under pressure, there are good facilities around.
To find the most suitable residence and secure a position, you need to be armed with the right information.
No one likes to think about living in an aged care facility but the reality is that one-third of all men and half of all women aged 65 or over can expect to go into permanent residential care later in their lives.
Source: The Age 6 April 2010
Journalist: Bina Brown
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Retire early with a nice, fat lump sum to fund your retirement? You've got to be kidding. For most baby boomers it will be challenge enough just to retire debt-free.
While government and the super industry debate about whether 9 per cent compulsory super will be sufficient for the average worker, the generation that missed out is reaching "that age" with inadequate super and virtually no chance of catching up.
Source: The Sydney Morning Herald and The Australian 24 March 2010
Journalist: Annette Sampson
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The challenge is that government funding of the aged pension and health services will become strained.
But it's not just governments that need to prepare for the ageing population; the attitudes and actions we take as individuals also need to change.
To lead a comfortable retired life, particularly in their later years, many Australians will need to draw on some of the value in the family home, by downsizing, by conservatively borrowing against the value of the house through equity release products, or by selling the family home and then renting.
Source: The Australian - 17 February 2010
Journalist: Don Stammer
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Rather than going to a lender for a reverse mortgage, a private reverse mortgage is where a retiree borrows the money from a private lender, such as their child, to help fund their retirement.
Senior Australians Equity Release Association of Lenders chief executive Kevin Conlon says the child needs to understand the burden that they are undertaking.
"You only have to lose a job, suffer a divorce or have more children, and all the things life throws up over time, to apply pressure to your capacity to continue that facility for your parents and they certainly don't have the capacity to repay that debt early," he says.
Source: The Australian Wealth Section - 17 February 2010
Journalist: Sara Rich
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Treasury has called for the formation of an industry consultation group to discuss the review of the equity release industry.
"SEQUAL approached the government to fast-track the review for the equity release products and to deal with equity release products as a priority," Conlon said.
"SEQUAL is confident that the existing practices within the industry are of a high standard and we believe that it is unlikely that there will be a significant regulatory change imposed on the market," he said.
"The industry has done a good job and this should be more of a health check."
Source: IFA Magazine Issue 490 February 2010
Journalist: Wouter Klijn
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Like a growing number of retirees in Australia, Mr Cowie, 76, considered a reverse mortgage -- where the equity in a home is used as security to borrow money -- but was concerned about whether there would be anything left in the estate for his family.
Senior Australians Equity Release Association of Lenders chief executive Kevin Conlon said home reversion schemes would suit retirees who were not optimistic that property value increases would outperform interest rate movements.
Source: The Australian -14 December 2009
Journalist: Sara Rich
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Senior Australians Equity Release Association of Lenders (SEQUAL) has admitted equity release provider Homesafe Solutions, in which Bendigo and Adelaide Bank holds a 50 per cent stake, as a member.
It is the first time the association has admitted a non-lender and it had to change its statutes to make the inclusion possible.
"SEQUAL has now extended its membership to include a non-reverse mortgage, equity release product provider," SEQUAL chief executive Kevin Conlon told InvestorDaily.
"It is important that senior Australians have choices in determining the most appropriate way to release equity from their homes."
Source: InvestorDaily -30 October 2009
Journalist: Wouter Klijn
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Accommodation bonds charged by nursing homes are said to have breached the million-dollar mark in some parts of Sydney and Melbourne, underlining the need to do what you can to minimise care costs and maximise Centrelink benefits.
Aged-care facilities, such as standard-care nursing homes and hostels, require potential residents to pay an upfront bond to secure a place. High-care facilities aren't allowed to charge bonds, though there have been calls for them to be permitted to do so.
The nursing home or hostel retains the accommodation bond, earning interest on the money and slicing off a monthly "retention" amount, which the Federal Government currently caps at $299 (indexed annually). There are also a variety of daily care fees.
RBS Reverse Mortgages, which markets special loans for accommodation bonds, says bonds now range from $130,000 in regional areas to as much as $1 million in the two biggest cities. Most commonly, they come to about $300,000.
Reverse mortgages or similarly structured accommodation bond loans are an option for those who can't or won't sell the family home, Dani says.
Source: The Sydney Morning Herald and The Age -December 2009
Journalist: Lesley Parker
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Retirement Expectations out of Step with Retirement Savings
New research shows that Australians are not saving enough to afford a comfortable retirement yet they are working less and spending more years in retirement than ever before.
According to the 24th AMP.NATSEM Income and Wealth Report, "Don't stop thinking about tomorrow", we now expect to spend around 20 years in retirement after age 65. In 1909 only around half of all Australians lived to age 65.
Source: AMP Financial Services
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Rewriting The Retirement Rules
The baby boomers are doing things their way when it comes to leaving the workforce.
It's retirement – but not as their parents knew it. The first of the baby boomers are hitting retirement and showing they will do things their way. Mostly, they want to travel, stay fit and healthy, do some voluntary work and help out their children and grandchildren,
Source: SMH -Online - October 2009
Journalist: John Collett
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SEQUAL To Provide Direct Training to Advisers
The Senior Australians Equity Release Association (SEQUAL) is in discussions with four large dealer groups to provide reverse mortgage training to their advice networks.
SEQUAL's decision to provide training courses directly to dealer groups comes after a disappointing uptake of the reverse mortgage accreditation program it has run in partnership with the FPA.
Source: IFA Magazine 479 - 19 - 25 October 2009
Journalist: Wouter Klijn
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Reverse Mortgage Market Grows
Reverse mortgages have increased in popularity with older Australians, a new study has found.
According to the report by Deloitte Actuaries and Consultants, the local reverse mortgage market grew by 13 per cent over the last financial year, measured by outstanding balances after 4,950 new borrowers entered the market.
The average age of the reverse mortgage borrower is 74, the report said.
Source: Mortgage Business Online -October 2009
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AUSTRALIA'S Reverse Mortgage Market Continues to Grow Despite the Downturn as Senior Australians Seek an Alternative to Superannuation to Provide a Regular Income Stream in Retirement
According to a study commissioned by the Senior Australians Equity Release Association of Lenders, last financial year the local reverse mortgage market grew by 13 per cent, measured by outstanding balances after 4950 new borrowers entered the market.
The Deloitte study shows the main reason Australians took out reverse mortgages was to receive a regular income stream in retirement, followed by debt repayment and home improvement.
Source: The Australian - 14 October 2009
Journalist: Sara Rich
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Reverse Mortgage Settlements Slump
Senior Australians Equity Release Association of Lenders chief executive Kevin Conlon said membership of his organization fell from 11 to nine during the June half and of those seven were active lenders.
SEQUAL lobbied the Government to have reverse mortgage securitisation included in the Australian Office of Financial Management’s latest round of investment in the mortgage market but was not successful.
Source: The Sheet - 14 October 2009
Journalist: John Kavanagh
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Crisis Weighs on Reverse Mortgage Market - Number of Providers Falls
"We had white-label providers - that is those providers that are using products engineered by major reverse mortgage lenders - drop out in June this year," Senior Australians Equity Release Association of Lenders (SEQUAL) chief executive Kevin Conlon said yesterday at the presentation of its half-yearly survey of the market.
The credit crisis and the subsequent collapse of the securitisation market provided funding problems for non-bank lenders.
Source: Investor Daily - 14 October 2009
Journalist: Wouter Klijin
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The reverse mortgage market continued to grow through the global financial crisis but at a slower rate than previous years, research shows.
The latest study of the Australian reverse mortgage market by Deloitte Actuaries and Consultants and industry body Senior Australians Equity Release Association of Lenders (SEQUAL) shows market growth of five per cent in the six months to June 30.
Source: The Sydney Morning Hearld smh.com.au - 13 October 2009
Journalist: Drew Cratchley
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Reverse Mortgage Market Continues to Grow
Australia's reverse mortgage market has grown five per cent in the six months to June with total outstanding funding representing $2.6 billion but the number of new borrowers has declined, a study found.
The Deloitte SEQUAL Reverse Mortgage Study found the market consisted of over 38,000 reverse mortgage facilities at the end of June.
Those that use a reverse mortgage don't appear to be over-extending their ability to re-finance. Older borrowers aged 75 or more only drew between 20 to 25 per cent of the value of their property, which compares to the 40 per cent of loan to value ratio that is available.
Source: The Financial Standard - 13 October 2009
Journalist: Michael Hobbs
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Brokers a "preferred" Channel for Reverse Mortgages
Mortgage brokers remain a preferred channel for reverse mortgage products, according to the industry body which governs providers.
The Deloitte SEQUAL Reverse Mortgage Study released today found that in terms of outstanding reverse mortgages, loans through the broker channel increased slightly over the last six months to the 30 June 2009.
The report found that "overall the direct channel remained the most popular at 53% but the trend continued towards intermediated sales with 47% of new loans taken through brokers and planners in H1 of 2009".
Source: brokernews.com.au - 13 October 2009
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Home Advantage: Reverse Mortgages
Since 2005, the use of reverse mortgages as an investment strategy has been typically restricted to a small segment of retired workers who wanted a source of credit to fund an improved lifestyle in retirement, according to Kevin Conlon, the executive director of the Senior Australians Equity Release Association of Lenders (SEQUAL).
But with the financial crisis biting into clients’ investments, there is growing interest in the strategy from investors who need a source of credit to supplement their investment incomes.
Source: Money Management - 8 September 2009
Journalist: Benjamin Levy
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Reverse Mortgage Strategies Come of Age
Predominantly, reverse mortgage funds are being used by Australian seniors to make living on the pension less of a struggle.
According to the RBS study, the most frequent use of reverse mortgages was for home renovations and improvements – creating the double advantage of making the home more pleasant to live in, while increasing the value of the property.
Source: Money Management - 8 September 2009
Journalist: Martin Lynch
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Government Ignoring Reverse Mortgage Story
Considering that the baby boomer generation will retire within the next 10 years and their superannuation investments have plunged, they may have no choice but to turn to the Government for help.
In such a situation, a reverse mortgage might be the right product to help retirees bridge the gap and lighten the pressure on government coffers. But the tightening credit market has left them unable to gain access to the funding they need – and the Government is not listening.
Source: Money Management - 8 September 2009
Journalist: Benjamin Levy
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ASIC Warning Frustrates Reverse Mortgage Sector
"There is clear evidence that reverse mortgages are being used wisely," SEQUAL chief executive Kevin Conlon said.
Source: IFA Magazine Issue 464 - August 2009
Journalist: Wouter Klijn
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Making Sure You Have Enough to Live on in Retirement
If you have retired or are about to do so,the 20 per cent that has been wiped off your retirement savings in the past two years could take up to seven years to recover.
Figures from Chant West show returns from median growth super dropped almost 20 per cent in the past two financial years. That would mean a $1 million nest egg two years ago would be worth only $809,970 today. A $500,000 sum would be worth only $404.985.
According to Andrew Lowe, head of technical sales strategy at ING, it would take 85 months to get back to your original sum, assuming you were relying solely on market recovery and not making any additional contributions. A 5 per cent return going forward would take 51 months to recover and a 7 per cent return 37 months.
Source:The Australian - 5 August 2009
Journalist: Gillian Bullock
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The Rise and Rise of Reverse Mortgages
'Aged care' or 'ageing in place' are not phrases that most of us think about every day, but planning ahead now can save a whole heap of financial frustration in retirement.
Reverse mortgages are sometimes thought of as the mortgage industry's country cousin. But given the contribution this product makes in the lending landscape, it is not a completely fair assessment.
Source: MPA Magazine 9.8 - July 2009
Journalist: Tim Neary
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Shares on the Way Up
It was my melancholy duty last week to write a story revealing that one in four self-funded retirees had gone back to work, or were planning to, to top up their devastated retirement savings.
A significant minority were also apparently planning to sell their homes and downsize to try to free up some cash, though I would think a reverse mortgage would be more sensible for many people in this situation.
Source: The Australian - 22 July 2009
Journalist: Geoffrey Newman
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Self-funded Retirees Forced Back to Work
One in four self-funded retirees have either returned or plan to return to the workforce as a result of losses to their retirement savings, according to research by CoreData.
The group’s research found that one in two self-funded retires have lost 25 per cent or more of their assets due to the global financial crisis. As a result, retirees are being forced back to the workplace and are cutting back on spending.
Source: Money Mangement - 15 July 2009
Journalist: Lucinda Beaman
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Reverse Mortgage Lender takes ASIC to task
Comments about reverse mortgages by the chairman of the Australian Securities and Investments Commission Tony D’Aloisio were unduly negative and were based on out-of-date research, a leading reverse mortgage provider said.
The head of RBS Reverse Mortgages, Martin Lynch, said ASIC’s view of the reverse mortgage market was informed by a small number of interviews conducted over a year ago.
Source: The Sheet - 30 June 2009
Journalist: John Kavanagh
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Reverse Mortgages Put to Good Use
SENIORS who take out reverse mortgages are not doing it to spend their children's inheritance, research has found.
Home repairs and providing a retirement income supplement are the biggest reasons, says the survey by provider RBS Reverse Mortgages.
Source: Adelaidenow.com.au - Money Feature - 22 June 2009
Journalist: Anthony Keane
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Reverse Mortgage Abuse Claims not Directed
at Planners: Conlon
A warning to investors by the Australian Securities and Investments Commission (ASIC) yesterday that consumers were sometimes encouraged to borrow more money than they actually needed was not necessarily aimed at financial planners and other intermediaries, according to SEQUAL executive director Kevin Conlon.
Source: Money Management - 23 June 2009
Journalist: Liam Egan
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The Search For Income
The relationship between financial planners and debt has always been troublesome and in the realm of equity release products the story is no different. But as the financial downturn has reduced retirees' savings and people continue to live longer, these products might have to be considered more seriously.
"The family home should be under advice," Senior Australians Equity Release Association of Lenders (SEQUAL) chief executive Kevin conlon says in a tone that reveals both passion and frustration.
Source: IFA Magazine Issue 460 -June 2009
Journalist: Wouter Klijn
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Research Shows Reverse Mortgages Have Been Used Wisely
New research shows that less than 10 per cent of Australian reverse mortgage holders have used the equity in their homes to pay for holidays, hobbies and luxury items.
Most said they used the money to fund necessities such as home repairs and to provide an income, according to a survey by RBS Reverse Mortgages.
Source: The Australian Business with The Wall Street Journal
4 June 2009
Journalist: Sara Rich
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Brokers Dominate Reverse Mortgage Market
Brokers and planners wrote more than half (52%) of new reverse mortgages during the last half of 2008 according to the latest six monthly study of reverse mortgage market by Deloitte and SEQUAL.
SEQUAL CEO Kevin Conlon told Lending Central "At the very early stage of the reverse mortgage market the broker channel took immediate and meaningful steps to ensure that brokers were well placed to provide reliable informaiton to reverse mortgage clients."
Source: Lending Central - 15 May 2009
Journalis: Jill Fraser
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Mortgages in Reverse Gear
There is anecdotal evidence that more senior Australians have asked about reverse mortgages in the past four months, according to the chief executive of the Senior Australians Equity Release Association of Lenders, Kevin Conlon. Current data only extends to December 2008
A majority of loans made in 2008 were taken as a lump sum, and with interst rates at historically low levels, nearly 90 per cent of loans had variable interest rates, compared to just 60 per cent in 2007.
About 10 per cent of loans are fully repaid every year, according to Deloitte, but less than 1 per cent end because a borrower dies or enters aged care. Most end because a house is sold or the owner volunteers a full repayment.
Source: The Age -4 May 2009
Journalist: Lucy Battersby
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Reverse Mortgage Specialists Seen Doubling
SEQUAL currently has about 1,400 reverse mortgage certified specialists consisting of mainly brokers.
"I hope to see that number double in size next year and for it to better represent planners as originators and settlers of these deals," SEQUAL chief executive Kevin Conlon Conlon said.
"We only launched our planner training program in August last year and the Financial Planning Association is committed to rolling that program out," Conlon said.
Last Friday, SEQUAL published a survey conducted by Deloitte Actuaries and Consultants on the growth of the reverse mortgage market in Australia.
Outstanding loans have grown from $2.02 billion at the end of 2007 to $2.48 billion at the end of 2008, an increase of 23 per cent.
But the settlements of new loans continued to slow, decreasing 28 percent from $195 million at the end of 2007 to $141 million at the end of 2008.
This trend was already noticeable in the first half of 2008, when settlements declined 34 per cent from $271 million at the end of 2007 to $180 million at the end of June 2008.
Conlon said this reflected the shift in client attitudes from "desire-based" to "needs-based" borrowing.
Source: InvestsorDaily -4 May 2009
Journalist: Wouter Klijn
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Financial Planners Need to Learn About Reverse Mortgages to Benefit Clients
Financial planners need to extend their knowledge of reverse mortgages to cater for clients who are moving into retirement and need access to equity in their home, according to Kevin Conlon, CEO of SEQUAL.
A growing number of self-managed super fund retirees and clients are also using reverse mortgages to diversify their risk, under the advice of their financial planners.
Source: Money Management -4 May 2009
Journalist: Benjamin Levy
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Reverse Logic
More seniors are taking out reverse mortgages to pay off debts and secure an income in retirement, a study shows.
Kevin Conlon, chief executive of the Senior Australians Equity Release Association of Lenders, said the association was backed by the major banks and non-bank lenders.
Source: WA Sunday Times -3 May 2009
Journalist: Noel Whittaker
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More Seniors Sign for Reverse Mortgages
Chief executive of the Senior Australians Equity Release Association of Lenders (SEQUAL) Kevin Conlon said the funding of reverse mortgages was becoming more challenging given the financial market conditions. However, SEQUAL was backed by the major banks and non-bank lenders that were well palced to meet the funding demands for the sector, he said.
Source: Brisbane Times, The West Australian, the bull.com.au online -1 May 2009
Journalist: Alison Bell
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Federal Government Urged to Back Reverse Mortgages
The Senior Australians Equity Release Association of Lenders (SEQUAL) is calling for the reverse
mortgages (RM) sector to be included in the Federal Government’s $8 billion emergency support measures for the Australian financial system.
Source: Money Management - 15 April 2009
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How to Avoid an Unlucky Break
Some retirees who want to sell their homes face big break fees on their Reverse Mortgages. These are the mortages available to home owners 60 and over who need to access some of the cash in their homes.
Source: Sydney Morning Herald - 15 April 2009
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Draw Down Relief to Boost Reverse Mortgages
The Federal Government's announcement that it would give a 50% cut to the minimum account-based pension draw-down will lead to an increase in Reverse Mortgage Activity, the National Information Centre on Retirement Investments (NICRI) has said.
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Note: Cannex's remarks regarding the reverse mortgage have been withdrawn.
Click here for a complete list of SEQUAL Members.
SEQUAL CEO -Kevin Conlon Career Profile
Kevin Conlon has made a habit of being the first to join in on the next big thing. And this is the way he thinks of the reverse mortgage industry, the latest sector he has chosen to throw himself into.
With more than 30 years' experience in the financial services industry, the first chief executive of the Senior Australians Equity Release Association of Lenders (SEQUAL) has always worked in fast-growing areas at the cutting edge of technology, product and regulatory development.
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Boomers and Beyond -Equity Release Clients & their Children
The largest generation within the Austalian population are now aged between 45 and 60. Many of them are poorly prepared for retirement and arrive at the end of their working life "Asset Rich but Cash Poor".
"The recent changes to super rules combined with innovative products that allow access to equity in the family home through Reverse Mortgages provide Financial Planners with a range of strategies to assist their Baby Boomer clients", states Kevin Conlon, CEO Senior Australians Equity Release Association of Lenders ("SEQUAL").
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