Reverse mortgages are a relatively new financial product in Australia. The industry is tiny compared with the US reverse mortgage market. Nevertheless, it provides a vital service for retirees and allows them to unlock some of the equity built up in their homes. Over the five years through 2014-15, industry revenue is forecast to grow at an annualised 1.1%. Declining interest rates are the main reason for subdued growth. Although the global financial crisis affected the industry, it can now be considered merely a hiccup in an otherwise fundamentally solid industry. The global financial crisis froze wholesale lending markets, which caused wholesale debt funding costs to skyrocket.
Companies in this industry provide reverse mortgages, which are loans available to seniors that are used to release the home equity in a property as one lump sum or multiple payments.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.
