Answers to Questions

HomeStart

323 The Hon. H.M. GIROLAMO ().7 February 2024). Can the Treasurer advise:

1. How many HomeStart reverse mortgages were applied for in 2022 and 2023?

2. How many HomeStart reverse mortgages were approved in 2022 and 2023?

3. How many HomeStart reverse mortgages fell into arrears at some point 2022 and 2023?

4. How many HomeStart reverse mortgages began recovery action for default in 2022 and 2023?

5. How many HomeStart reverse mortgages have completed recovery action in 2022 and 2023?

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector): The Treasurer has advised:

1.

2.

3. HomeStart's 'reverse mortgages' are known as the Seniors Equity Loan, and available for borrowers aged over 60. These loans cannot fall into arears as repayments are voluntary. A borrower can choose to make repayments at any time, or defer repayment until the house is sold, the last borrower moves out, or passes away. HomeStart's Seniors Equity Loan has a 'no negative equity guarantee' which means the loan balance cannot exceed the value of the property.

4. Four.

Recovery action for default is typically only required for a Seniors Equity Loan where the executor of a deceased estate fails to take the appropriate steps to pay the debts of the estate.

5. One.