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EY's Global Equity Release Roundtable 2020 survey report reviews data from 13 different markets, and found that the market is expected to soar to $50 billion of equity by 2031.
Currently, over $15 billion of equity is released by homeowners each year, but the advisory firm believes the market could be set for takeoff.
While the reverse mortgage and equity release market is set to grow, its popularity could be hindered by a lack of awareness among consumers.
“The survey report confirms that equity release providers across the globe are facing similar challenges and opportunities,” says Steve Kyle, secretary general of the European Pensions Asset Release Group.
The EY report follows a study conducted by Heartland, NZ's biggest reverse mortgage provider, and the Royal Melbourne Institute of Technology.
The joint study found that 90% of Australian retirees wanted to stay in their home for as long as possible, but didn't have the funds to do so.
Andrew Ford, head of reverse mortgages at Heartland NZ, said: “Heartland is experiencing a strong increase in demand from people wanting to stay in their home and live a more comfortable retirement. Despite this, many people over the age of 60 don’t realise that a reverse mortgage could help them fund the retirement they desire and deserve.”
“This research demonstrates that demand for equity release options will continue to rise, and it’s our role as the market leading provider to help educate consumers about how a reverse mortgage could be an option for them, particularly as the cost of living continues to increase.”
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There are so many home owners for example, that are asset rich but cash poor.
The recent rapid growth in house values only adds to the problem of finding the money to pay the rates, insurance and other associated costs, and a well constructed reverse mortgage I anticipate, will be the choice of many.