Would a reverse mortgage be right for you?

Reverse mortgages can be very useful.

But new research suggests that these products, which are usually used by people over 60 are not always well understood.

And one big question hangs over them.

Are they right for you?

The Australian Securities and Investment Commission has a new publication which might help you decide

Its called “Thinking of using the equity in your home? A new independent guide to reverse mortgages and other equity release products.”

It was launched jointly yesterday by the Chairmen of the Australian Securities and Investment Commission and the Australian Government Financial Literacy Board.

They are, respectively, Tony D’Alosio and Paul Clitheroe.

Mr D’Alosio said taking out products like these is a big step.

The family home is often people’s biggest asset, he added.

He said, too, that these products can involve “significant risks.”

The guide provides important information on:-

• the risks
• the alternatives
• whether equity release is right for you
• what to look out for
• where to get more information

If you would like a copy of the guide, you can go to www.fido.gov.au or call 1300 300 630

Related stories:

1. What happens to your family if you die, but your mortgage lives
2. Super:better criteria ahead
3. Better information for property investors