SMH.com.au reported today that the reverse mortgage market has grown by 34% in 2007, now with a combined market value of $2.02 billion compared to $1.51 billion at the end of 2006. Reverse Mortgages are a relatively new product which enables a homeowner to borrow against the equity in his/her home and receive regular monthly tax-free payments from the lender.
That figures compares with a total loan book of $1.51 billion at the end of 2006, according to a study of the sector by actuarial and advisory firm Trowbridge Deloitte.
But new sales, or "settlements", for the year reached only $466 million - 10 per cent below the amount achieved in the previous year.
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