DomaCom to launch into reverse mortgage market
Financial advisory software provider DomaCom is positioning to enter the reverse mortgage market, announcing the development of new equity release products.
The move was announced by DomaCom chief executive Arthur Naoumidis, who also announced the appointment of the former chief executive of the peak equity release industry body, SEQUAL, Kevin Conlon to the role of manager, business and professional development.
According to DomaCom, it is aiming to release what it describes as "second generation" products which will extend the market beyond bank-funded and debt-based products.
"The need for the equity release market to extend its reach beyond traditional bank-funded and debt-based products has been clear for some time," Conlon said, "The number of reverse mortgage providers has fallen dramatically since the global financial crisis, at the same time as demand from senior Australians continues to grow - and a better solution had to be found."
The company intends that investors using the DomaCom platform can purchase a partial interest in properties of their choice.
It said they would be able to purchase as much as is available or as little as they want down to one per cent, and spread their overall investment across a number of properties that match their preference for property type and geographic location.
The company said this would allow a property owner to sell a partial or fractional interest in their home to one or more investors.
It said DomaCom will soon present what it believes is Australia's first online property exchange, where property owners and investors could exchange ownership interests in property. The company will list available properties and make interests in those properties available to investors through licensed real estate agents and financial advisers.
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