Reverse mortgages seminar in Busselton

Issue Date: - Tuesday, 12 May 2009

Consumer Protection is bringing its series of seminars on reverse mortgages to Busselton this week.

Commissioner for Consumer Protection Anne Driscoll said recent seminars in other regional centres and the Perth metropolitan area had been very popular, with good feedback from people who attended.

Ms Driscoll said “Reverse mortgages allow people to use the equity of their home to obtain money, repaying the debt later. Many seniors, in particular, have taken advantage of them in the past. They can be attractive, especially in these times of lower share prices, dividends, and incomes for retirees. However, reverse mortgages are complex and there are potential pitfalls that consumers need to consider.

Consumer Protection, in partnership with the Council on the Ageing WA, will outline some of the risks involved at the Busselton seminar, and help ensure that anyone contemplating a reverse mortgage is fully aware of how they work. “It is important consumers fully appreciate their legal rights and responsibilities if they take up a reverse mortgage.” Ms Driscoll said.

“Reverse mortgages often did not require repayments until the property was sold, and the owner moved into a retirement village, or an aged care facility or passed away.

“However, borrowers also may have to sell their home and repay the loan in full if they breach certain clauses of the loan contract,” Ms Driscoll said.

“If spouses, partners and other family members are not a co-borrower on the loan, they might have to vacate the property when the borrower passed away,” she said.

The Busselton session will be held at The Lesser Hall, 22 Peel Tce, Busselton between 1.00 and 3.00. on Thursday, 14 May.

ENDS

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