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The home equity retirement funding provider has signed an agreement to acquire the portfolio, with the transaction expected to be completed this month, subject to customary conditions.
The portfolio will be funded through Household Capital’s existing funding programs.
Upon completion, affected Macquarie customers will transition to Household Capital’s specialist retirement funding platform, gaining access to its digital lending platform, specialised in-house customer service team, and additional home equity where appropriate.
Any other Macquarie products and services held by customers included in the transaction will remain unaffected.
The acquisition comes more than a decade after Macquarie first moved into the reverse mortgage market.
In 2014, the bank launched a reverse mortgage and accommodation bond loan targeting retirees aged 70 and over, with both products offering a maximum loan-to-value ratio of 45 per cent.
The reverse mortgage allowed customers to access equity in their home through a lump sum, regular monthly payments, or a combination of the two.
Macquarie later withdrew its reverse mortgage offering from the market in June 2017, alongside Westpac, amid broader lender movements in the sector.
Reverse mortgage demand climbs
However, the acquisition also comes as demand for reverse mortgages has grown among older Australians looking to access equity held in the family home.
Recent data from reverse mortgage brokerage Seniors First showed demand for reverse mortgage loans through the Commonwealth’s Home Equity Access Scheme increased 21 per cent over the past 12 months.
Online searches relating to reverse mortgages also climbed 62 per cent over a six-month period.
Seniors First CEO Darren Moffatt previously told Broker Daily that reverse mortgages were becoming an increasingly important consideration for older Australians planning their retirement or restructuring their finances amid cost-of-living pressures.
“For many older Australians, their home is their biggest asset, and a reverse mortgage can be a practical way to access some of its value without needing to sell or downsize,” he said.
However, the growing popularity of the product has also brought its complexity into greater focus.
Research conducted by Seniors First found more than 150 key differences between Australia’s top four reverse mortgage lenders, spanning product features, lender policies, post-settlement procedures, and future access to funds.
[Related: Lendi Group expands into new Sydney HQ]
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