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Reverse Mortgage Providers

Reverse mortgage providers have recovered from difficult political and economic environments. Many providers have started issuing new reverse mortgages again, but others have stopped lending altogether or left the market due to concerns about their reputations or prudential practices. The COVID-19 pandemic and government-backed competition caused economic uncertainty for lenders, which hindered industry revenue in the years 2021–2022. Since then, the trend has reversed, with revenue rising to $442.5 million over the five years through 2023–2024 at an annual rate of 4.6%. The current year is predicted to see an 18.5% increase in revenue as seniors look to access their home equity to combat severe inflationary pressures, driving up demand. Reverse mortgages are currently provided by companies other than banks.

Reverse mortgage demand is expected to increase as Australia's population ages 70 and over continues to grow over the medium term. Over the coming years, alternative equity release product types will present competition for industry providers. As the retirement age rises, the industry's largest market will continue to be people over 70. As reverse mortgage revenue grows, house prices will continue to climb, which will impact the amount that can be borrowed.

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