Reverse mortgage opportunity for advisers: Heartland

Heartland posted its results for the six months to December, noting a net post-tax profit of $33.1 million, up 6.5% on the same period the previous year. 

The profits were helped by 24.9% annualised growth in its Australian reverse mortgage book, a factor Flood says is down to increasing awareness across the Tasman, and a deeper broker channel. Heartland's New Zealand reverse mortgage book grew by 10.7% over the same period.

"Australia is a more competitive market, and we have been the only player advertising here [in New Zealand] for a while. It also comes down to broker driven-business. Brokers are a bigger part of the Australian market, and retirees are going to them to help solve their problems."

Flood said only a "tiny amount" of New Zealand reverse mortgage business came through advisers, compared to about 70% of its Australian reverse mortgage book. He said this was a clear opportunity for advisers to broaden their product range and have a conversation with retirement age clients. Heartland pays a flat fee of $500 for reverse mortgage referrals, and believes they can help advisers demonstrate their value.