“Australian Seniors Planned Equity Release (ASPER) is a revolution in the seniors lending arena,” says Margaret Macnamara Director of Mortgage Corporation Network, which has spent 18 months developing the Refund Mortgage franchise product.
The financial services franchise network is a non-bank lender who specialises in market niche loans and developing products where none have existed previously. ASPER has the ability to not increase debt levels, increase equity and not affect Centrelink benefits in most cases if used as advised. It is apparent that major interest is generated by its simplicity in allowing the timely transfer of assets down the family line.
“Seniors lending is an evolving market place where there is a market that is larger than any that has come before. However let’s not be complacent and let’s give sound service and advice,” states Mrs Macnamara.
“Many seniors are hesitant at the spiralling compounding interest and the tricky bits of a reverse mortgage. This can affect their ability to pass on assets to their children and children’s children. What really bugs them is the interest rate.” ‘It’s not fair’ “is the most common thing we hear when it comes to rate on reverse mortgages. Many seniors feel they have been let down when it comes to borrowing in later life. The thing we hear most from seniors is:” ‘I just don’t like the reverse mortgage product.’
“ASPER is a very productive loan product and a long term on the books client facility to have for brokers and we are releasing it now into the market place for brokers to advise their seniors clients about. This product is so easy … the financial planning is all done by one of Australia’s highest performing national groups and the mortgage is a stable product that has been in the market place and recognised for over 15 years.” ASPER supplies two income streams without a heavy burden being placed on the borrower.
ASPER uses the dual disciplines of Mortgage Management and Financial Planning to deliver a sound and effective product that seniors can understand and have some faith in. It also offers an alternative to just a reverse Mortgage by having specifically designed and planned loans for each case. Interest rate is an important part of the ASPER loan and is approximately 1 per cent lower than a reverse mortgage and has the ability to capitalise but not compound.
“Our accreditation process is simple and our process times are fast compared to most in the market place. These loans are simple to write and we pay a fair commission and trailer and a second income stream via our planning income from our national referrer agreement,” says Mrs Macnamara.
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