I refer to the article “The safer way to release equity” (The Daily Telegraph, Jun 2).
It states that “Always ask for a lifetime mortgage. You keep ownership and deeds to your home.”
Let us try do a comparison with the HDB Lease Buyback scheme.
Comment: HDB’s is for a fixed lease like 30 years, instead of as long as you live.
“Always ask for an Equity Release Council approved plan. One major benefit is the No Negative Equity Guarantee.”
Comment: HDB’s is “no equity” for the owner(s), instead of a guarantee that there will never be “negative equity”.
“Discuss the options to protect your equity.”
Comment: HDB’s does not enable you to pass on any remaining equity on death to beneficiaries.
“Keep your options open with the ability to make payments.”
Comment: HDB’s pay you a fixed monthly annuity for life, instead of the option to receive less or nothing during periods when the owner (s) do not need the full monthly annuity payout.
“Gather information, then get advice.”
Comment: HDB’s advice is by the HDB, instead of independent specialist advice.
What do you think of the HDB’s Lease Buyback scheme?
How does it compare with other reverse mortgage schemes in the world – especially from the perspective of the owner(s)?
Leong Sze Hian