From 1 March 2013, before a licensee can assess a consumer’s suitability for a reverse mortgage loan, it must show or give the consumer projections of the value of their property that may become reverse mortgaged property and the consumer’s indebtedness over time if the consumer were to enter into a contract for a reverse mortgage (section 133DB, NCCP Act).

The licensee must give the consumer a printed copy of the projections.

These equity projections must be generated using the reverse mortgage calculator on the ASIC MoneySmart website.

Licensees must also make reverse mortgage information statements available on their websites and on request.

The National Information Centre on Retirement Investments is a government funded organisation which offers a free independent telephone service to help consumers understand reverse mortgage products.