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The product was developed in partnership with lender Household Capital and is the first reverse mortgage available on the Connective panel. The product is available to home owners aged 60-plus.
A catalyst for the release of this product is the ageing demographic of Aussie borrowers.
According to Connective, 36 per cent of retirees carry a mortgage and nearly a third of broker clients are over 60 years old.
With a large portion carrying wealth in assets, the need for reverse mortgage solutions is as great as ever.
More than half (54 per cent) of over-55s hold a mortgage, with an average value of around $200,000.
Over a third (36 per cent) of retirees reach retirement with a mortgage and Connective expects this figure to grow.
Michael Goerner, head of Connective Home Loans, said Connective Reverse will help empower brokers to unlock clients’ home equity.
“As the Baby Boomer generation moves deeper into retirement and Gen X begins to follow, brokers have an unprecedented opportunity to support these clients with tailored lending solutions,” he said.
“We’ve worked closely with Household Capital to ensure this product is broker-friendly and aligned to the high standards our members expect.”
Esther Angrisano, head of distribution partnerships at Household Capital, said the partnership is a “significant milestone” for the lender.
“We believe the partnership leverages the strengths of each company; product specialisation from Household Capital, and a sophisticated distribution platform from Connective,” she said.
“We hope to expand our reach with the help of Connective’s proven white label capability to make more brokers aware of solutions that can help their older clients.”
Angrisano said brokers should be aware and engaged with the reverse mortgage market now more than ever.
“We’re seeing a growing demographic of retirees who are actively seeking solutions to manage their finances, fund home improvements, or support their lifestyle without selling their family home,” Angrisano said.
