“The reverse mortgage market in Australia and New Zealand is small compared to the US,” they explained. “We have worked hard in every country to build a solid reputation for the product. Since 2014, Heartland has been offering inverted mortgages in Australia and New Zealand and is the largest supplier of reverse mortgages in every country. “
But it is also a growing market, the couple added. Both the New -Zeelandse and Australia inverted mortgage companies have experienced a growth of around 20% since that first year and further gain insight into the way in which the American market has evolved, they said if they navigate through their own market, they said.
Product agreement, differences
Although there are various broad agreements between the reverse mortgage product of New Zealand/Australia and the dominant program offered in the US, the presence of the regulations in their markets are generally less strict. New Zealand contains more voluntary guidelines. In Australia, reverse mortgages are subject to the National Consumer Credit Protection Act (NCCPA) that is supplied with borrower protection such as lifelong occupation and a ‘no negative equity’ guarantee.
In New Zealand, the products are bound by the credit contracts and Consumer Finance Act 2003 (CCCFA), the couple of which says: “Protects the interests of consumers in connection with credit contracts, leases for consumers and purchasing transactions”, despite a specific reverse mortgage facility. Also in the game in New Zealand is the Ministry of Social Development of the Government, which set non-binding guidelines for reverse mortgages in 2008. Heartland meets these guidelines, they explained.
The company also requires that customers put on independent legal advice to fully understand the requirements of the product, with the aim of meeting a comparable position as the counseling requirement of the state. But you don’t have to look far for differences between their market and the American counterpart.
“The range of products offered was probably the biggest difference,” said the couple. “The HECM for purchase in the US is marketed to brokers to help people buy houses,” and there is no equivalent product in New Zealand or Australia, they said. The amount of HECM for purchasing material during the event had noticed the couple, but the variety of players in the US compared to the other two countries also stood out.
“In New Zealand there are only two main providers of inverted mortgages, both are banks,” they said. “Heartland Bank is the largest provider of a vast majority. The main distribution channel is a direct-to-customer, but there are some brokers who also refer customers. “
In Australia, Heartland is one of the 11 inverted mortgage providers and applications that come through brokers “are usually presented to a panel of money lenders and customers choose the best product for their needs,” the couple said.
Get out of it
The couple added that they were also affected by the different tacts that the American industry has with marketing inverted mortgages for potential customers.
‘[R]Eve mortgages are put on the market in the US so differently, in the way they are compared to a standard mortgage, which emphasizes the total cost benefit, “they explained.” This is not common in Australia or New Zealand. And although The purpose of the product is somewhat different in the US […] This approach to marketing is potentially something for us to consider exploring. “
Different countries can accept very different approaches to market their reverse mortgage products. Even in North America, the general tonal differences between many of the most prominent and visible inverted mortgage commercials in the US can be very different from the tones that are investigated immediately north of the border.
HomeuenitybankBased in Toronto, Ontario, demonstrated this with advertising presentations at previous NRMLA events, with a more fun, somewhat rebellious emphasis for Canadian seniors who are determined to get older.
Homeunity Bank has also followed new approaches by hiring well-known media personalities for older Canadians, including a long-existing national news anchor, as well as an American former conse-consultant of CONMAN-GERED to liberate whose story was the basis of a popular steven Spielberg film.
