Brokers a "preferred" channel for reverse mortgages

The Deloitte SEQUAL Reverse Mortgage Study released today found that in terms of outstanding reverse mortgages, loans through the broker channel increased slightly over the last six months to the 30 June 2009.

The report found that "overall the direct channel remained the most popular at 53% but the trend continued towards intermediated sales with 47% of new loans taken through brokers and planners in H1 of 2009".

There are currently 1,500 brokers accredited in Australia to offer reverse mortgage products.

As of 30 June 2009 the market consisted of 38,000 reverse mortgage facilities with total outstanding funding of $2.6 bn. This represents market growth of 5% in the six months to H1 2009.

Demand for the product has slowed slightly compared to the previous six month period in 2008 - down from 2,600 new borrowers to 2,350.

"The sustained, albeit slower market growth over the last six months, demonstrates to us the important role equity release continues to play in assisting Australian seniors to face the challenge of funding their retirement," said Kevin Conlon, chief executive SEQUAL.