Backup plan: Falling interest rates have caused revenue to decline, despite rising assets

IBISWorld’s Reverse Mortgage Providers market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.


Industry Threats & Opportunities

  • An ageing population, rising house prices and a higher cash rate will support growth in the industry
  •  Most of the loans written by industry participants are variable interest loans

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    Industry Analysis & Industry Trends

    The Reverse Mortgage Providers industry has declined over the past five years, despite industry assets growing over the period. Australian's knowledge and awareness of reverse mortgages remains limited, despite the wealth of untapped home equity among the population who are qualified to take out a reverse mortgage. Nevertheless, the industry provides a vital service for retirees, allowing them to release some of the equity in their homes. Industry revenue is expected to decline at an annualised 4.9% over the five years through 2016-17, to total $227.8 million, this includes an expected decline of 4.5% in the current year...

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    What is the Reverse Mortgage Providers industry?

    The Reverse Mortgage Providers industry has declined over the past five years on the back of falling interest rates, which have caused interest revenue to decline. The industry continued to be afflicted by the global financial crisis at the start of the period, with several industry participants forced to end their involvement or become inactive in offering new reverse mortgages. Low product awareness among its target market and a declining cash rate over the past five years have made it difficult for industry participants to generate any significant growth from outstanding reverse mortgages. Des...

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    Additional Insights for the Reverse Mortgage Providers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Reverse Mortgage Providers Industry are

  • Ability to educate the community
  • Ability to effectively manage risk
  • Financial position of the company
  • IBISWorld analysts also discuss how external factors such as Residential housing prices and Population aged 70 and older in the Reverse Mortgage Providers industry impact industry performance..

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    Products & Brands

    Major products in this industry
    Lump sum loans
    Income stream only
    Lump sum and income stream
    Line of credit
    Examples of brands in this Industry
    Heartland Seniors Finance
    St.George Bank
    Bank of Melbourne

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Residential housing prices
  • Population aged 70 and older
  • Cash rate
  • year bond rate

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Population growth
  • House prices
  • Distribution channels
  • Table: Reverse Mortgage Providers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Reverse Mortgage Providers Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Mortgage Brokers
  • Financial Planning and Investment Advice
  • Consumers

  • Key Selling Industries
  • Accounting Services
  • Consumers
  • Financial and Insurance Services
  • Legal Services
  • Office Property Operators
  • Telecommunications Services

  • Products & Services
  • Lump sum loans
  • Line of credit
  • Income stream only
  • Lump sum and income stream
  • Chart: Reverse Mortgage Providers Industry Products and Services Segmentation

  • Demand Determinants
  • Interest rates
  • Consumer preferences
  • Pension payments

  • Major Markets
  • Consumers aged 70 to 79
  • Consumers aged 80 and over
  • Consumers aged 60-69
  • Chart: Major Market Segmentation for the Reverse Mortgage Providers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Interest expense
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Reverse Mortgage Providers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Reverse Mortgage Providers Industry

  • Industry Globalization
    Major Companies
    Commonwealth Bank of AustraliaWestpac Banking CorporationMacquarie Group LimitedAustralian Seniors Finance Pty Limited
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: Westpac Banking Corporation - financial performance
  • Table: Macquarie Group Limited - financial performance
  • Table: Australian Seniors Finance Pty Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Reverse Mortgage Providers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Reverse Mortgage Providers Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total Assets (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • Authorised deposit-taking institutions.
  • Negative Equity
  • When the value of collateral is below the outstanding loan balance.
  • Reverse Mortgage
  • A variation of a mortgage that allows a homeowner to convert equity in their home to cash.
  • Sequal
  • Senior Australians Equity Release.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Reverse Mortgage Providers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Reverse Mortgage Providers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Reverse Mortgage Providers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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