Grow and diversify your business with Reverse Mortgages Part 2

Australia’s finance industry remains in a state of regulatory change as we all work towards ensuring positive outcomes for our customers. In the meantime, in areas such as residential mortgages, borrowers are facing tougher credit conditions. With this uncertainty, it is more important than ever for brokers to diversify their portfolio to ensure it is sustainable.

With over 5 million Australians aged 60+, an aging population, sustained lower interest rates, and increasing indebtedness for those in, or approaching, retirement, demand for reverse mortgages is high and increasing strongly. They are also straightforward to write and easy to add to a broker’s product offering.

In response to this demand, Australia’s leading reverse mortgage provider Heartland Seniors Finance has expanded its product range over the past few years to include reverse mortgages that can offer financial freedom to more customers, including an Aged Care Option and an Investment Property Reverse Mortgage.

What is a reverse mortgage?

A reverse mortgage is like a normal home loan that has been designed for the needs of seniors. It allows people aged 60 and over to release home equity to live a more comfortable retirement. No regular repayments are required, and the customer continues to own their home, with the debt being repaid from the future sale of the property (generally when downsizing, selling the property, passing away or moving to aged care).

Reverse mortgage loans are also very flexible. Funds can be used for any worthwhile purpose, including home improvements, travel, a new car, debt consolidation, medical costs, aged care, or living expenses. The loan can also be accessed as a lump sum, plus a regular advance, cash reserve facility (similar to a ‘line of credit’), or a combination of all three.

Why reverse mortgages should be part of every broker’s portfolio

Offering reverse mortgages allows brokers to grow and diversify their income stream with long-term, sticky loans. The loans generally grow over time, provide a long-term revenue stream, and have little ongoing maintenance.

As there are only a few providers left in the space, and a credit licence is required, brokers have an instant advantage.  Using their customer base and network, many brokers already have reverse mortgage opportunities which are yet to be tapped.

The growing market

Australians aged 60 and over comprise 21% of the population (5.1m), and Australian retirees have 70% of their wealth tied up in the family home.

While all retirees are different, most have similar priorities. They want to be able to fund an enjoyable lifestyle, to have protection against running out of money, and to continue to live in their family home, enjoying the proximity it provides to their community, social network, and fond memories.

The full Age Pension for a couple is approximately $36k, so for those relying solely on the pension, it is difficult for many to cover even a modest standard of living, let alone the retirement they want and deserve.

The solution: accessing the equity in their home with a reverse mortgage.

Diversify your business with Heartland

Established in 2004, Heartland Seniors Finance has assisted over 15,000 people aged 60 and over release equity from their home, helping them to live a more comfortable retirement, with independence and dignity. If you would like to engage with this growing market and add reverse mortgages to your product offering, please feel free to sign-up to the Heartland Broker Portal or contact their dedicated support team on 1300 662 865 or This email address is being protected from spambots. You need JavaScript enabled to view it..

IMPORTANT NOTICE: Applications are subject to loan approval criteria. Terms, conditions, fees and charges apply. Credit provided by ASF Custodians Pty Ltd (ACN 106 822 780 / Australian Credit Licence No. 386781).

Written by Heartland Seniors Finance

Last Updated: 14 March 2022

Published: 01 February 2019