Most Australians support government option, not mandate, for reverse mortgage
April 13, 2012
A survey conducted by the Combined Pensioners and Superannuants Association (CPSA) reveals that 59 percent of Australians support a government-backed program to help seniors use reverse mortgages in order to help them with expenses in retirement, according to Reverse Mortgage Daily.
However, opinions quickly shifted when study participants answered questions about a mandatory use of home equity.
"[The survey] has found that two-in-three Australians reject the notion that anyone should be forced to sell or reverse mortgage the family home to access aged care, as proposed by the Productivity Commission report 'Caring for Older Australians,'" said CPSA senior policy/research officer Antoine Mangion, quoted by the news source.
Specifically, the Productivity Commission called for the establishment of a government-backed Aged Care Home Credit Scheme that would allow seniors to draw on home equity at a very low interest rate in order to cover the cost of aged care. Repayment would not be due until all residents of a home relocate.
The CPSA survey also found that two-third of all participants had not thought about how they would pay for aged care. While this rate was 25 percent among those 18 to 34 years old, it increased along with participants' age.