New Zealand’s tough legislation on reverse mortgages plus transferability to retirement villages

Legislation is being rushed in NZ to place limits on reverse mortgages. They include a ‘no negative equity’ clause, meaning that the borrower cannot be left with a debt when all their equity in their home is used up. The borrower will also be guaranteed lifetime occupancy of their home – they cannot be evicted. And they will also be able to transfer their reverse mortgage loan to a retirement village.