Call now on 0800 733 008
 
 
 

DorchesterLife first off the block to launch new Home Equity Release Loan that meets the customers' needs.

18 May 2007

 

 

 

 

 

 

DorchesterLife is the first home equity and reverse mortgage provider to launch a new product in line with customer needs, as shown in findings from the largest independent study of the sector released by Deloitte Trowbridge in April 2007.

The new DorchesterLife Home Equity Release™ Loan is a simplified version of a reverse mortgage, but continues the added benefits of free life insurance and free accidental death cover.  It also has a ‘no-negative equity guarantee’ which ensures that the client never has to pay more than the proceeds received on the sale of the house.

Reverse mortgages are now being seen as a mainstream financial option for many older New Zealanders looking to fund their retirement, according to findings in the nationwide study.

The study has shown the growing demand for reverse mortgage products in New Zealand, with the market doubling in size in the past twelve months, and similar growth predicted for the current year.

The average age of all borrowers is 73, with an average loan size of $49,900. Only about 60 percent of the total approved loan is accessed straight away. This illustrates that New Zealand borrowers are remaining well within their approval limits, and drawing down as and when they need extra cash.

Group General Manager from DorchesterLife, Henry Lynch, commented on the booming market: “Historically, New Zealanders have invested in their homes, and there is a considerable pool of housing wealth which retirees are now looking to utilise as part of their retirement funding.

“As the reverse mortgage market grows, lenders are offering a larger range of products and retirees are shopping around for product features that best suit their lifestyle.

“Customers should make sure they chose a credible provider and a reverse mortgage that best suits their needs and individual circumstance”.  

Key features of the new DorchesterLife Home Equity Release™ Loan include:  

  • Continued home ownership

  • No repayments while still living in the home

  • Security and peace of mind with DorchesterLife’s “No Negative Equity Guarantee”

  • Flexibility to draw down as much or as little as is needed, when needed

  • Free Life Insurance and free Accidental Death Cover

  • Portability so customers can transfer their loan to another property

  • The home should continue to appreciate, off-setting a large proportion of the cost of the loan

  • Regular customer feedback including six monthly statements

ENDS

For more information, please contact:

Henry Lynch                                                   

Group General Manager, DorchesterLife

Tel: 09 300 4858

Notes to Editor

What is a reverse mortgage or home equity release loan?

The reverse mortgage, or home equity release loan, is available to home owners over 60 years of age, who may own a house but find themselves ‘asset rich, cash poor’. A reverse mortgage allows home owners to access some of the value tied up in their home, while continuing to live there.

These funds are put to many uses by customers, with the majority using funds to renovate or improve their house, and to repay other debt. Other common uses for the funds are to purchase a new car, take a holiday, pay for private healthcare and surgery or to help other family members, such as putting grandchildren through University.