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Royal Bank of Scotland (RBS) Reverse Mortgages has hit back at a reverse mortgage guide released by ASIC and the Australian Government Financial Literacy Board which it claims may scare some seniors away from equity release products.
Thinking of using the equity in your home? was launched by ASIC chairman Tony D’Aloisio and chairman of the Literacy Board Paul Clitheroe yesterday, and warns that reverse mortgages are “difficult to understand” and can limit seniors’ financial choices down the track.
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While acknowledging the importance of information on reverse mortgages, RBS Reverse Mortgages has urged the bodies not to overlook the life-changing power reverse mortgages offer.
“There are few financial options available to seniors who are without regular income. A reverse mortgage allows asset-rich / cash-poor retirees to significantly improve their life,” RBS Reverse Mortgages head of reverse mortgages Martin Lynch said yesterday.
Mr Lynch said RBS Reverse Mortgage’s study of the reverse mortgage market, which involved interviews of over 400 reverse mortgagees in December 2008, contradicted ASIC’s 29 interviews, conducted in 2007.
“We found that these are moderate loans that make a real difference to the lives and lifestyles of our clients,” he said.
