Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Deloittes’ Study Confirms Sentinel’s Experience

Media Release
26 April 2007

Deloittes’ Independent Study Confirms Sentinel’s Experience

The first comprehensive study of New Zealand’s home equity release market – the Trowbridge Deloitte New Zealand Reverse Mortgage study, which found significant growth and acceptance of this financial solution – confirms leading New Zealand provider Sentinel’s experience.

“The market has grown strongly for us in the past year, and is expected to grow even more by overall size and in the size of our loan book in years to come,” says CEO of Sentinel Vaughan Underwood. “Home equity release is clearly being seen as a major financial solution for seniors and we believe it will be even more frequently utilised by baby boomers. The findings tally closely with Sentinel’s experience and demonstrate that this new financial solution is filling a gap in retirement funding, and genuinely helping older New Zealanders out.”

Sentinel, which is three years old and is the leading provider of home equity release in New Zealand, experienced a nearly 100% increase in its loan book in 2006 over 2005 – from $89 million (at the end of 2005) to $176 million (at the end of 2006).

This represented a growth of 94% in numbers of loans – from 1801 loans at the end of 2005 to 3493 loans at the end of 2006.

The above figures were released in January by Sentinel, and closely mirror the Deloitte report today.

“Of interest – the Deloitte’s survey says that loans are predominantly used for home improvements,” said Mr Underwood. “Independence and being able to live in your own home during senior years, are being fostered by the Government in their “Ageing in Place” strategy. Indeed, most elderly people prefer to spend their senior years at home. But independence can come at the expense of continued home maintenance, which many can ill afford – and this research reiterates that. Sentinel’s own research shows that after retirement most New Zealand homes are only painted once every twenty years - simply not enough to maintain their condition or value. A home equity release such as Sentinel’s Lifetime Loan can be a genuine life saver, and a great boost to continued independence. By releasing equity in their major asset – their house – many seniors find they can maintain their home properly, and make it more comfortable to continue to live in.”

Sentinel Limited is a New Zealand owned and established company that was one of the first to offer home equity release products here.

It is a member of New Zealand’s voluntary industry association SHERPA (www.sherpa.org.nz) [Safe Home Equity Release Plans Association] which has a code of practice aligned with European consumer protection models to help ensure customers are well informed on home equity release.

Lifetime Loans – background

Sentinel’s Lifetime Loans are secured against a customer’s house and do not require any regular repayments to be made. The amount able to be borrowed increases with the customer’s age, rising to 45% of the home’s value at age 90. Interest is applied to the loan and accumulates monthly. The full value of the loan may be repaid at any time, and is repayable on sale or at the end of the person’s life.

On average most borrowers take out less than 15% of the value of their homes.

All Sentinel lifetime loan clients are given a projection of the loan’s size based upon the value of their homes, the amount they are borrowing, and the projected value of their home in 20 years – on a conservative projection basis of increase in value of their home annually of 4% and 7%.

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>

PriceSpy: Research Reveals How Shopping Behaviours Have Changed This Christmas

According to a new survey* from PriceSpy , almost 50 per cent of Kiwis are looking to shop locally this Christmas in light of Covid-19; The research also found consumers are changing their shopping habits, with one in seven (14 per cent) getting super-organised ... More>>