Well provided for: An ageing population and rising house prices will fuel industry growth

The Reverse Mortgage Providers industry has slowed over the past five years. Falling interest rates have been the main factor behind the industry's performance, with most reverse mortgages being issued on a variable interest rate. Several operators in the industry resumed issuing new reverse mortgages at the start of the five-year period, but some have ceased new lending or exited the industry during this time. Overall, industry revenue is expected to rise at an annualised 0.9% over the five years through 2018-19, to total $265.8 million. Industry revenue is projected to rise by 5.1% in the current year as interest rates on reverse mortgages rebound...read more.

Industry Statistics & Market Size
Revenue
$266m
Annual Growth 14-19
0.9%
Forecast Growth 19-24
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Profit
x.x%lock
Employment
179
Businesses
6
Market Share of Companies

Industry Threats & Opportunities

  • Falling interest rates have contributed to slow revenue growth over the past five years
  • Several operators have left the industry or become inactive in issuing new loans
  • 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 SWOT Analysis Chapter

    The Reverse Mortgage Providers industry is currently in the growth phase of its life cycle. Industry value added (IVA), which measures the industry's contribution to the economy, is projected to grow at an annualised 6.6% over the 10 years through 2023-24. This represents an outperformance of overall GDP, which is forecast to increase at an annualised 2.7% over the same period. This indicates the industry's contribution to the economy is rising, with a large amount of untapped home equity for industry operators to capitalise on, given the pace at which residential property prices have risen over the past five years.Australia's ageing population is driving demand for reverse mortgages. The...purchase to read more.

    Additional Insights for the Reverse Mortgage Providers Industry

    IBISWorld has determined the most important Key Success Factors for the Reverse Mortgage Providers 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, typically as a lump sum, income stream or a line of credit.

    Industry Products
  • Lump-sum loans
  • Progressive drawdown
  • 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
  • Residential housing loan rates
  • year bond rate

    • Current Performance
  • Operating landscape
  • Falling interest
  • Demand fundamentals
  • ASIC review
  • 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
  • Line of credit
  • Lump-sum loans
  • Progressive drawdown
  • Lump sum and income stream
  • Other
  • Chart: Reverse Mortgage Providers Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Consumers aged 70 to 79
  • Consumers aged 60-69
  • Consumers aged 80 and over
  • 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, Heartland Australia Holdings Pty Limited, Macquarie Group Limited,
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: Westpac Banking Corporation - financial performance
  • Table: Heartland Australia Holdings 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Total Assets (2010-2024)

    • 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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