ASIC reviews reverse mortgage lending
R everse mortgages are a credit product in the Australian market that allow older Australians to borrow using the equity in their home. The loan does not need to be repaid until a later time, typically when the borrower has vacated the property or passed away.
ASIC reviewed data on 17,000 reverse mortgages, 111 consumer loan files, lender policies, procedures, and complaints. They also commissioned in-depth interviews with 30 borrowers and consulted over 30 industry and consumer stakeholders.