Heartland reverse mortgage book grows 10%
Heartland's reverse mortgage receivables jumped 9.7%, or $49.6 million, to $559.9 million. The group, which owns Heartland Bank, said the rise was driven by increased brand awareness and advertising.
Chris Flood, chief executive of Heartland Bank, told TMM Online that the "vast majority" of reverse mortgages were sold to direct customers. In Australia, brokers provide the bulk of reverse mortgage business to the bank.
Flood believes more Kiwis want to bolster retirement income through equity release products, as people look to shore up their finances through the Covid-19 pandemic.
"People want to retire in their own home in comfort, especially in this Covid environment," Flood said. He said borrowers typically took out reverse mortgages worth $50,000, for home improvements, new cars or medical payments.
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