Co-founder and director of The Demographics Group, Simon Kuestenmacher recently spoke with magazine The Adviser regarding the ageing population and potential increase in downsizing.

Mr Kuestenmacher explained that older homeowners are living the Australian dream of owning their own home, and have been reluctant to downsize, which is playing a part in little housing stock supply in outer suburbs and regional areas. Conversely, he also commented that millennials are seeking two and three-bedroom dwellings after reaching the family stage of their lives, which is increasing demand. The outcome would be that mortgage brokers will “have their hands full” by the 2030s as the ageing population ”frees up” high-demand two to three-bedroom homes. 

However, many people as they get older do not wish to downsize. Research by the Royal Melbourne Institute of Technology (RMIT) supported by Heartland, shows that almost 90% of older Australians say they wish to age in place – that is, to remain in their current home compared with moving into specialised care, or moving at all.

Though downsizing could see brokers needing to support young families transitioning into the next stage of life, the inverse is also true – the ageing population also presents an opportunity for brokers to assist older Australians as they look for finance options such as reverse mortgages, enabling them to access the capital in their homes without having to move, meeting their needs and plan for the rest of their retirement. 

Whether that is to complete home renovations in order to age in place or increase their property value, pay outstanding mortgage debt, supplement their income, purchase a smaller home, or even assist their children with a home purchase a reverse mortgage could be used to help them achieve this. 

Mortgage brokers are ideally placed to help family members in all stages of life and provide a full service offering from first home to last home or care facility, through adding a reverse mortgage to their books for older clients. 

With the projected growth in the equity release market over the next 10 years set to triple globally, Heartland presents an opportunity for brokers to get on board with Australia’s leading reverse mortgage provider now – as a way of futureproofing their business.

We provide specialised training, a dedicated Broker Support Team, an online Broker Portal and loan submission platform, regular broker newsletters, and marketing resources to help grow your business.

Get in touch with us to discuss how you can become a Heartland accredited broker by calling us on 1300 662 865 or email us via [email protected], or find out more about how a reverse mortgage works.

Information provided is accurate as of 28 March 2023  and may change from time to time.