Lifetime Mortgages Not So Hot in Oz

One of the Big 5 banks in Australia, the Commonwealth Bank, says it has no plans to introduce 40- or50-year "lifetime mortgages", according to the Sydney Morning Herald.

With interest rates tipped to rise this week, the mortgages,which offer lower monthly repayments and are widely available in Europe and the US, have been in the media spotlight.

"If consumers showed interest we would look at it," he said. "However, we have no plans to look at it, and we have not started looking at it".

But a GE Money spokesman predicted the banks could follow itslead. "We're known for being innovative - anything we do I'm sure the banks are looking at it closely to see if they can copy it," he said.

The company's 40-year home loans had so far attracted only a couple of hundred customers a year, the spokesman said. "We've had more interest from investors looking for capital appreciation," he said.

"But we expect interest from home loan consumers will increase as there's more pressure on interest rates."