The golden years: Australia's ageing population will support industry growth

The Reverse Mortgage Providers industry has declined over the past five years, despite industry assets growing over the period. Falling interest rates have been the main factor behind the industry's decline, with most reverse mortgages being issued on a variable interest rate. Several operators in the industry also stopped issuing new reverse mortgages due to funding issues, while others exited the industry after their reverse mortgage assets were acquired by other lenders. Overall, industry revenue is expected to decline at an annualised 0.1% over the five years through 2017-18, to total $267.8 million. Industry revenue is projected to rise by 2.1% in the current year as interest rates on reverse mortgages rebound...read more.

Industry Statistics & Market Size
Revenue
$268m
Annual Growth 13-18
0.0%
Forecast Growth 18-23
x.x%lock
Profit
x.x%lock
Employment
226
Businesses
8
Market Share of Companies

Industry Threats & Opportunities

  • Falling interest rates have contributed to revenue declines over the past five years
  • The exit of international players has helped boost the position of the top lenders
  • A forecast rise in the cash rate is expected to support industry growth over the next five years

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    Industry Report - Industry Investment Chapter

    The Reverse Mortgage Providers industry is characterised by a low level of capital intensity. For every dollar paid as wages, an estimated $0.05 is spent on capital investment. The industry relies heavily on labour, with larger operators having an extensive branch network to sell products, negotiate with clients and attract new business. Computer software is used in processing and approving reverse mortgages, but labour remains an essential part of the process. Furthermore, it is difficult to completely automate the process and shift to an online platform like several lenders have done with traditional mortgage products. The main reason behind this is the general lack of computer literacy among the target markets of the industry. Ove...purchase to read more.

    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 wider community
  • Ability to effectively manage risk
  • Financial position of the company (as against financial structure)

    • 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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    What's in this report

    Industry Products

    What is the Reverse Mortgage Providers Industry?

    Companies in the industry provide reverse mortgages, which are loans available to seniors that are used to release the equity in a property as a lump sum, income stream or a line of credit.

    Industry Products
  • Lump-sum loans
  • Income stream only
  • Lump sum and income stream
  • Line of credit
    • Industry Activities
  • Reverse mortgage lending
  • Reverse mortgage origination
  • Reverse mortgage servicing
    • 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
  • Funding sources
  • Falling interest
  • Industry consolidation
  • Demand fundamentals
  • 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
  • Finance
  • Legal 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
    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
  • 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 Australia, Westpac Banking Corporation, Australian Seniors Finance Pty Limited, Macquarie Group Limited,
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: Westpac Banking Corporation - financial performance
  • Table: Australian Seniors Finance Pty Limited - financial performance
  • Table: Macquarie Group 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total Assets (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Adi
  • 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.
    • What Our Customers Say
    Why buy this report?

    The Reverse Mortgage Providers market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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