Sequal supports action on misleading reverse mortgage ads

Article states that the senior australians equity release association of lenders (sequal) is trying to distance itself from the Transcomm "misleading" advertising actions.

The Senior Australians Equity Release Association of Lenders (Sequal) has made an attempt to highlight the differenct between reverse mortgages products offered by its members and the fixed-term loan offered by Transcomm Credit Co-operative.

The problem with the Transcomm Fixed-term product was that borrowers might have to pay the loan back in their lifetime.

ASIC deputy chairman Jeremy Cooper said unlike most reverse mortgage products, the Transcomm product was a fixed-term loan that meant consumers were likely to have to repay the loan in their lifetime.

He said the product had a number of features that could result in borrowers being disadvantaged.

“The Annuity Plus Reverse Mortgage allows Transcomm to reduce the amounts advanced to borrowers and, in some circumstances, even require early repayment.”

This again highlights the need to fully understand any reverse mortgage product that you care considering.