Heartland's reverse mortgages grow at more than 20%

The New Zealand reverse mortgage business showed the fastest growth in receivables of 23.2% to $889 million with net operating income (NOI) jumping 30.3% to $42.4 million while the Australian business' receivables rose 20.7% to $1.54 billion with NOI up 20.9% to $47.3 million.

The company cites the rising cost of living and cashflow pressures on older homeowners as driving the increase in the NZ business. It also attributes the growth to greater awareness and acceptance of the product.

“Over the last decade, Heartland has helped more than 22,000 New Zealanders to enjoy a more comfortable retirement by releasing equity from their homes,” it says.

Cost of living pressures and increased debt consolidation helped drive the Australian business and customers also sought funds for home improvements to make their homes more retirement-friendly or for holidays or a new car.