Australia: Reverse mortgages not thicker than blood

Australia: Reverse mortgages not thicker than blood,

Parents who use a reverse mortgage to lend funds to their children could face losing part of their pension on a technicality, said Louise Biti, head of technical services at Asteron.

“Children in a great deal of debt may place pressure on their parents to take out a reverse mortgage in order to help them financially,” Biti said.

She said assuming the parents have other assets and are over the threshold amount and used a reverse mortgage to lend to their children, they run the risk of transferring an ‘exempt asset’ into an ‘assessable asset’.

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Written by News & Feeds on October 7th, 2007 with comments disabled.
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