A report from SEQUAL, a lending association targeting seniors, has highlighted the dangers of Reverse Mortgages. Reverse mortgages have become popular in recent years as retirees seek to maximise their income. It's a product that is gaining more popularity with financial planners. They have been particularly popular with people who have benefited from the property boom of a few years ago.Be aware that financial planners are often paid commissions when the sell loans and other third party financial services to you. Just because reverse mortgages are popular with the lending industry does not mean they are right for you. For a start reverse mortgages will reduce your total equity in your home meaning there is less money there for your kids inheritance and in case of unexpected expenses later in life.
You can learn more about reverse mortgages at ASIC's website here.
SEQUAL is an industry association that has drafted a code of conduct designed to ensure high quality financial advise for seniors. They warn all consumers of financial advise that they should get legal advice on any financial agreements that they are party to.
SEQUAL is an industry association that has drafted a code of conduct designed to ensure high quality financial advise for seniors. They warn all consumers of financial advise that they should get legal advice on any financial agreements that they are party to.
"It's very important that they have a lawyer look over the contract, explain the obligations to them, and make sure they're doing it for the right reasons."
You can call Erina Legal anytime to have financial agreements reviewed on 02 4365 6556.
