Related News: FSC questions whether FOFA achieved its objectives
Equity release product specialist Homesafe Solutions has joined with Senior Australians Equity Release (Sequal) to claim the recent fall in the share market will increase pressure on retirees to look to reverse mortgage options.
The two organizations claimed this week that given the decline in the market, now might be the right time for retirees to consider releasing some of the equity in their homes via a reverse mortgage or a home reversion product.
“Utilising an equity release product enables retirees to preserve their existing assets and more importantly ride out share market volatility, whilst being able to continue funding their retirement and remaining securely in their homes,” they said.
The statement said the introduction of the Future of Financial Advice (FOFA) reforms would contribute to assisting retirees to make informed decisions when considering home equity release products, in particular by ensuring that advisers considered carefully that their right to remain in their home for the remainder of their lives was completely protected.