This briefing reviews interest in reverse mortgages in New Zealand and drivers of future market growth. It then profiles leading competitors in the market including Sentinel, SAI Life and Lifestyle Security. Finally Datamonitor presents its opinion on the future of the product and its distribution as well as on the future competitive environment.

• Covers the New Zealand reverse mortgage market with supplementary coverage of markets in Australia, the UK, the US and Canada
• Profiles competitors including Sentinel, SAI Life and Lifestyle Security
• Based on interviews with executives working in the reverse mortgage market in New Zealand

Increased interest in reverse mortgages must be placed in the context of wider use of home equity. In recent years home equity has become much more accessible. Rather than seeing equity only as a 'stock' to be built up over time consumers see home equity as a 'flow' to be tapped as and when required.

The Lifestyle Security line of credit facility can unquestionably establish itself in the New Zealand market being structured very differently from competing products. It is Datamonitor's opinion that going forward this line of credit style products will become increasingly popular among reverse mortgage borrowers.

The average advance on a reverse mortgage will never be as large as that on a standard mortgage loan. However, as consumers regard reverse mortgages in a more positive light, retirees become less debt adverse and they incorporate reverse mortgages into their financial planning decisions they will be happier to borrow more.

• Learn about reverse mortgage products currently offered on the New Zealand market
• Learn about possible product enhancements based on experience in Australia, the UK, the US and Canada
• Identify ways to maximise the effectiveness of your reverse mortgage distribution strategy