19 April 2005
With Australians living longer in retirement and compulsory superannuation not fully providing for many, Macquarie Mortgages has launched a reverse mortgage known as Macquarie Silver Living to the Australian market.
A reverse mortgage allows a customer to convert the equity in their home into income. No repayment is required until moving from the property or at death as long as the loan has been conducted in accordance with its terms and conditions.
"Reverse mortgages allow people who have become asset rich but cash poor to enjoy life now. Their house is likely to have been their number one savings account so why shouldn't they enjoy all their hard work in their retirement years," said Mike Barrett, Macquarie's Head of Mortgages Australia.
Silver Living will be available through all Macquarie Mortgages accredited mortgage brokers and financial advisers.
"It's a product that gives customers the opportunity to enhance their wealth to live the life they want to in retirement," said Mr Barrett.
"Macquarie Silver Living is the type of loan product that our clients have been seeking," said Brett McKeon, Chairman of the Australian Finance Group (AFG).
"We think it is a growing market and often field enquiries from customers about how to tap into the equity in their home particularly when they have moved out of the working phase of their life and no longer have a regular income. Importantly for us, the way Macquarie Mortgages have established the product ensures flexibility for our customers and also protection from issues such as negative equity," said Mr McKeon.
Mr Barrett said, "An essential element of the product is ensuring customers understand how a reverse mortgage works and its terms and conditions. We will be supplementing the skills and expertise of our brokers and financial advisers with training to ensure customers are making informed decisions. As further protection, all customers are required to receive independent legal and financial advice before signing up."
"Silver Living is available for customers 60 years of age and over who own their own home. They can borrow as much as 40 per cent of the value of their home up to $500,000. We also have a No Negative Equity Guarantee which means that customers will never owe more than the value of their home as long as the loan has been conducted within its terms and conditions. Any shortfall between sale proceeds and the amount owed is covered by us."
"We believe Silver Living is one of the most flexible reverse mortgage products in the market. Our borrowing capacity is amongst the best available and funds can be taken as a regular monthly payment, a lump sum or a combination of both. It has attractive interest rates with a variable and 10 year fixed rate option".
"This is a new market for Macquarie Mortgages and we’re excited about its opportunities. Silver Living is all about turning a customers nest into a valuable nest egg to enjoy life" said Mr Barrett.
For media queries, please contact:
Manager - Marketing
Macquarie Mortgages and Securitisation
Tel: (612) 8232 8192
For customer queries, please call:
1 300 133 470
Case Study (pdf 34KB)