ABN AMRO has been awarded a rare 5 star rating by research house Cannex in its first review of Australian Reverse Mortgage providers. This independent recognition is in addition to four awards that ABN AMRO’s reverse mortgage won in 2007, making it the most awarded reverse mortgage in Australia in 2007.
ABN AMRO was one of only two “stand out” providers to receive the top 5 star rating by Cannex, which reviewed 55 reverse mortgages offered by 17 institutions. Cannex awarded stars based on the combination of interest rate, availability of options, flexibility and LVR. ABN AMRO’s product was awarded 5 stars due to its attractive product features, including the fact that it offers six variations of its reverse mortgage, all with protected equity written in.
“The focus of our reverse mortgage product on delivering benefits to customers is the secret to our success,” said Martin Lynch, Head of Reverse Mortgages at ABN AMRO.
“We’re delighted that Cannex has begun to cover this rapidly-growing area, and we believe it’s important for customers to have the comfort of an in-depth review and independent assessment when making such an important financial decision.”
Commenting on the rising trend of reverse mortgages, the Cannex report observed that: “Equity-rich, cash poor retirees have literally been given a new lease of life with the development only a few years ago of a market in this country for reverse mortgages…The market has now evolved into a $1.8 billlion product sector which has grown no less than 67% in the last 12 months alone.”
First launched in November 2005, ABN AMRO’s Reverse Mortgage has been recognised due to its rare combination of flexibility and competitive pricing. As the most flexible product in the market ABN AMRO’s Reverse Mortgage allows customers to choose how to access their cash – drawing a lump sum, monthly income or set up a line of credit – or a combination of all three.
All this choice comes with low fees and no hidden charges - no ongoing fees during the life of the loan, no redraw fees, no revaluation fees, no monthly fees.
One of the key features that led to so many awards is the Flexible Drawdown Facility. This is often referred to as the “rainy day facility”. It enables seniors aged over 60 to set up a facility that is just there if they need it – if they don’t use it, there are no monthly fees or charges and obviously no interest.
“We are obviously really pleased to receive a 5 star rating from such a comprehensive review. The real delight though in this product is seeing how relatively small sums can transform people’s lives.” Mr Lynch said the rainy day facility is also great stress relief for customers, as well as meaning they still have control of their lives.
Leading reverse mortgage broker Darren Moffatt, Managing Director - Seniors First Specialist Finance, commented: “As a leading broker group in senior’s finance, we’re in the business of finding people the best reverse mortgage solutions available.”
“Increasingly our customers are telling us they want flexibility and control, which is why the ABN AMRO reverse mortgage is proving so popular.”
He said with their unique line of credit option, and status as one of the world’s largest banks, they offer market-leading flexibility and peace of mind.
“It’s little wonder ABN AMRO is consistently in our top product recommendations to clients.”
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