According to business information analysts at IBISWorld, the reverse mortgage providers industry, currently worth $252.2 million in revenue, is set to grow strongly over the next five years. Industry revenue is forecast to increase at an annualised 5.4% between 2016 and 2021, to reach $328.0 million as more homeowners look to unlock equity in their homes as a lump sum, income stream or line of credit.

As Australia’s baby boomer generation enters retirement and seeks new ways to fund enriched lifestyle choices – including travel and relaxation – demand for reverse mortgages is expected to grow. Rising house prices (which allow for a greater amount to be borrowed) and an increasing cash rate (which drives up the interest revenue generated on reverse mortgages) are expect to support growth in reverse mortgages.

IBISWorld’s has just released its newly updated reverse mortgage providers in Australia industry report, which provides a comprehensive overview of this growing industry.

Source: IBISWorld

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