iscover 
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.
"The transition of Macquarie customers to Household Capital is intended to be simple and seamless for both customers and brokers," said Josh Funder, chief executive officer and managing director of Household Capital.
"On completion of the transaction the customers will become Household Capital customers and will be able to access their loan through Household Capital's Australian-based customer service teams and our specialist loan management system.
"Similarly brokers will be contacted directly regarding the transition of any ongoing commission arrangements. Where possible, brokers will be contacted as part of the transfer process to discuss their customer's needs and situations and ensure the transition goes smoothly for their customers."
Funder added that both lenders involved were providing updates directly to customers and brokers.
Any other Macquarie products and services held by customers included in the transaction will remain unaffected.
"The most notable difference for customers will be direct access to a lending specialist with significant experience dealing with the financial needs and circumstances of retiree borrowers. This experience ranges from handling day-to-day administrative issues to arranging extended or refreshed lending facilities so customers can access more of the wealth in their home."
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]
Want to see more stories from trusted news sources?Make Broker Daily a preferred news source on Google.