Brokers urged to expand into over-60s space to grow their businesses
Mortgage aggregator Connective has announced the launch of ‘Connective Reverse’, a reverse mortgage product developed in partnership with Household Capital.
It’s the first time a reverse mortgage has appeared on Connective’s lender panel, signalling a sharper focus on the country’s growing cohort of over-60s seeking financial flexibility in retirement.
“Connective Reverse fills an important gap in our offering and creates a new opportunity for brokers to support a rapidly growing demographic – homeowners over the age of 60,” Michael Goerner (pictured, right), head of Connective Home Loans, said. “This is about empowering brokers to help clients unlock their home equity in a responsible and supported way.”
More than 5.8 million Australians are now over 60, and 36% of retirees still carry a mortgage, according to Connective. Many within this “silver tsunami” cohort, to use Connective’s terminology, are asset-rich but cash-flow constrained.
Reverse mortgage products like Connective Reverse help them unlock equity to improve their quality of retirement life.
“As the Baby Boomer generation moves deeper into retirement and Gen X begins to follow, brokers have an unprecedented opportunity to support these clients with tailored lending solutions,” Goerner said.
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Esther Angrisano (pictured, left), head of distribution partnerships at Household Capital, called the partnership “a significant milestone for Household Capital”.
“Together, we’re making these vital solutions more accessible to Australian homeowners through a trusted, professional broker channel,” said Angrisano.
Angrisano also highlighted the potential for brokers to grow their business by expanding into this space.
“We hope to expand our reach with the help of Connective’s proven white label capability to make more brokers aware of solutions that can help their older clients. Mortgage brokers should absolutely be prepared to tap into the reverse mortgage market, now more than ever.
“We're seeing a growing demographic of retirees who are actively seeking solutions to manage their finances, fund home improvements, or support their lifestyle without selling their family home.”
Connective Reverse is currently available to Connective mortgage brokers exclusively through the Connective Home Loans portfolio.
