A majority of Australians are supportive of the use of reverse mortgages in retirement if provided as a government program, according to a national study conducted by a senior advocacy non-profit. However, the population is not supportive of the mandatory use of home equity to pay for long term care.
The results of a survey conducted by the Combined Pensioners and Superannuants Association (CPSA) in Australia were released by the organization Wednesday, and shed some light on the national preferences surrounding reverse mortgages and the use of home equity to pay for long-term care costs.
According to the survey, 13% of Australians “strongly support” the notion of a government-backed reverse mortgage while 46% “somewhat support” it. Of those opposed to the idea, 21% say they somewhat oppose it and 20% say they are strongly opposed.
When it comes to requiring a reverse mortgage, however, the vast majority expressed opposition.
“[The survey] has found that two-in-three Australians reject the notion that anyone should be forced to sell or reverse mortgage the family home to access aged care, as proposed by the Productivity Commission report ‘Caring for Older Australians,” said CPSA Senior Policy/Research Officer, Antoine Mangion.
CPSA used the results to oppose a federal proposal that would require older australians to sell their home or use a reverse mortgage to pay for care.
“Clearly, the Federal Government must steer clear of compulsory sale or reverse mortgage of the family home to fund aged care,” CSPA said.
View the survey results.
Written by Elizabeth Ecker