Contact: Louise Denver
Deloitte
Director of Financial Services Communication
+61 2 9322 7615

Contact: James Hickey
Trowbridge Deloitte
Partner
9322 5009

The Senior Australian Equity Release Association of Lenders, SEQUAL^®, released a comprehensive study of the reverse mortgage sector today. Actuarial firm Trowbridge Deloitte was commissioned by SEQUAL^® to undertake this inaugural research.

The SEQUAL^®/Trowbridge Deloitte Reverse Mortgage Study, which will be updated every six months, found that the reverse mortgage market at 30 June 2006 consisted of more than 20,000 loans with a total book of almost $1.1 billion.

Kieren Dell, Executive Director of SEQUAL^®, which is a not-for-profit member organisation that governs lenders of reverse mortgages to seniors and provides them with consumer safeguards, said "Reverse mortgages are steadily growing as a retirement financial planning tool. I expect the level of outstanding loans to be close to $1.4b by the end of 2006.

James Hickey, Trowbridge Deloitte partner who led the study, said, "The market has more than doubled in the past 18 months with the sector’s outstanding loan book of $1.1b at 30 June 2006 increasing from $459m at the end of 2004, and $848m at the end of 2005."

Hickey also said that "Settlements of new reverse mortgage loans were $315 million in 2005, and were already $210 million to 30 June 2006. New inflows are growing at a rate of more than 30% per annum".

SEQUAL^® executive director, Kieren Dell explains, "This growth coincides with an increase in the number of product providers, providing improved product flexibility and wider distribution channels".

Note: Please see attachment below for full press release