I’d like to now introduce our senior equity release product which has just been released as we speak.

It’s a very exciting new product that enables property owners or retirees to sell a bit of their house to provide either an income stream for their retirement lifestyle funding or provides capital for other purposes.

The way I best describe the product is by using an example and the one I’d start with, say, Mrs. Smith, you know, she’s 78 years old, owns a $500,000 house and needs $100,000. We would say, “You need to sell 20% of your house,” but the reality is she won’t be able to pay the rent. So rather than buying $100,000 of a house, we buy $140,000 and the $40,000 stays in a sub-fund after we pay her the $100,000. And on her behalf, the fund then pays rent for the next five years. And we do this every five years.

So in 5 years’ time, property investors will acquire another $30,000 or $40,000 to pay the next 5 years’ worth of rent. So it’s quite a powerful product, very simple to understand.

If I sold my whole house to a property investor and I wanted to stay there, I’d have to pay rent. So if I sell a quarter of the house, I’d have to pay rent on that quarter. And that is our business model. It’s very, very simple.

Now, the power here is that there are many, many retirees who frankly don’t want to downsize by selling their whole house and moving into golden acres retirement home or to you know, a small apartment somewhere, they want to stay in the house that they live in. And also, at any time the retiree or their family can acquire the interest back, they can buy it back off us, so it’s fairly flexible.

And the other feature is that the family, the siblings, the children can also be the ones who provide the equity release who invest in the sub-fund. So it’s a very powerful tool for financial advisors to include the whole family.