(Australia) Commonwealth Bank has launched a “reverse type” mortgage for senior citizens whereby the bank will offer cash for equity in their homes.Called the Equity Unlock Loan, the aim of the product is to “provide asset-rich but cash-constrained seniors” with the option of turning part of their property asset value into cash.
Customers can withdraw cash either in lump sums or periodically in exchange for equity in their homes.
CBA executive general manager, Mortgages and Investments, Geoff Austin said older Australians were faced with having to rely on limited amounts of income.
“The Equity Unlock Loan for Seniors will provide the extra comfort of knowing that they can access their assets and enjoy a more secure and independent lifestyle, including not having to depend on the support of relatives to do so,” he said.
However, consumer groups have voiced concern over the arrangement, saying potential customers must seek out independent advice before taking the bank up on its offer.