Tighter contracts to protect home owners

Reverse mortgage providers are changing their contracts to offer better consumer protection after several holes were found in “no negative equity” guarantees. The Senior Australians Equity Release Association of Lenders (SEQUAL) will require members to abide by stricter standards from July, although the details are still being finalised. No negative equity guarantees are designed to ensure that clients' debt never exceeds the value of their property.

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