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3 Comments
I would think a lot of retirees would be checking out their options in a low interest environment,whether that resulted in taking out a reverse mortgage after carrying out due diligence, they might not have the same enthusiasm.they have a calculator on their website that spells it out.
Agreed lastlegs
Reverse mortgages in NZ have a history of considerably advantage the lender and consequently have a poor reputation.
Lots of other poor schemes out there - such as Licenses to Occupy - which sound good in principle but are being manipulated to rip off the elderly who are asset rich but cash poor and under pressure with limited options.
I would approach a reverse mortgage with a great deal of trepidation. .
I think its an area that probably needs a bit of regulation to protect borrower and lender alike.
With an agreed requirement that borrowers must seek an independent legal and/or financial opinion to ensure they have understood everything, it would protect borrowers but also give others lenders more confidence to enter into this space without the fear of having to deal with abusive and upset family members after Mum/Dad's passing.
Making this space more attractive to the big banks to enter will surely improve pricing as clearly Heartland are benefiting from the lack of competition.
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