DorchesterLife joins SHERPA

DorchesterLife, which offers both home equity release loans and reverse mortgages, has joined industry group SHERPA (Safe Home Equity Release Plans Association).

Tuesday, November 13th 2007, 7:46AM
SHERPA's goal is the promotion of safe home equity release plans and the protection of plan-holders.

The increasing popularity of reverse mortgages means organisations such as SHERPA are becoming more important for New Zealanders in the current financial climate, executive director Rob Dowler says.

"The level of interest in home equity release plans is reflected by the total outstanding loan balances doubling during last year. This rate of growth is expected to be maintained this year."

DorchesterLife group general manager Henry Lynch says that with the increasing popularity of reverse mortgages, an organisation such as SHERPA is ever more important to ensure that public trust in the industry is maintained. He says Dorchester's current practices and policies are in line with the association's code of practice.

"By joining SHERPA, DorchesterLife subjects itself to accountability through compliance requirements such as full disclosure of fees and charges, the no-negative equity guarantee and lifetime occupancy, amongst others."

DorchesterLife has recently changed its reverse mortgage products, reducing the minimum house value from $200,000 to $100,000, the minimum additional drawdown from $5,000 to $1,000 and cutting the cost of set up fees.

It also offers free life insurance of $1000 and free accidental death cover of $5000.

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