Pension Boost has written reverse mortgages in every state in Australia and compiled data from over 200 approved Pension Loans Scheme (PLS) applications.
Pension Boost found that the average age at application for the PLS was 73 years old and nearly 10% of loans were to self-funded retirees. Furthermore, almost half of the applicants had existing mortgages in retirement and 10% of initial requests came, not from the retirees themselves, but from their children.
Breakdown of PLS application states
|Location||Percentage of total loans|
|ACT & NT||1%|
Pension Boost statistics from 200+ approved PLS applications
Paul Rogan, Founder and CEO of Pension Boost – which acts as an agent for retirees seeking to access the Government-run Pension Loans Scheme reverse mortgage – believes that self-funded retirees could account for up to 20% of applications by 2025 – given the RBA's view on low interest rates for at least the next 3 years.
Paul stated, "Self-funded retirees are facing tough times when they depend, in large, on term deposits and cash rates. They know ultra-low interest rates are here for years and other sources of secure regular income are needed. Self-funded retirees are astounded when they realise that an extra income of up to $55,000p/a is possible from a PLS reverse mortgage.”
Paul went on to say, "Having loans and enquiries coming in from every state has been heartening. Those retirees wanting to keep their house and who are not well-resourced with superannuation/savings are getting more comfortable with the concept of drawing down on the family home. It is also pleasing to see an increasing level of enquiry from the children of retirees concerned at the quality of life their parents are enduring on just the age pension”.
Want to learn more about Pension Loans Scheme? Try our online PLS Calculator to find out for yourself today.