Code of Practice for Home Equity Release Schemes
Media Release September 3, 2008.
Code of Practice for Home Equity Release Schemes Welcomed
The Safe Home Equity Release Plans Association, SHERPA, today welcomed the release of the government’s voluntary Code of Practice for reverse mortgage products.
“SHERPA has been working for some time with the government and the Office of Senior Citizens to help develop a code that meets the needs of both providers and consumers,” says SHERPA executive director, Rob Dowler.
“The code, together with SHERPA’s own robust guidelines, provides the public with a clear benchmark against which to safely assess equity release products, and make an informed choice.”
The launch of the government’s Code of Practice acknowledges the increasing importance of equity release products in meeting retirement funding needs.
The retirement funding challenge is anticipated to increase as the percentage of New Zealanders aged 65 and over will increase from a forecast 13.5% of the population in 2011 to 22.5% in 2031, with equity release products expected to become an increasingly important funding solution.