Finding the financial freedom to age in place
30 September 2025
The aging populations of New Zealand and Australia present a clear and compelling market need. For many retirees, a lifetime of wealth is locked up in their homes, leaving them without the means to live a comfortable retirement.
In Australia, it is projected that the number of people over 65 years of age will make up around 20% of the population by 2066, up from 16% at 30 June 2020.[1]
This is reflected in New Zealand, where it is forecast that the proportion of New Zealanders over 65 years of age will increase from 17% in 2024 to between 21-24% in 2051, and between 25-33% in 2078.[2]
Reverse mortgages allow people over 60 years of age to access the equity in their homes as a loan, with no regular repayments required.
For Heartland Bank Australia customer Errol, who is 76 years of age, the unexpected breakdown of his car left him searching for a way to access funds. Living with prostate cancer and Parkinson’s disease, the Victorian grandfather uses his car to visit his family and volunteer in his community.
Desperately seeking a car loan, he was surprised to find that he and his wife, who are both on a pension, were ineligible.
“There was no other way for me. I tried multiple brokers and they kept on telling me that my pension was not enough to cover a car loan, or extend my mortgage,” he said.
An analysis by the Association of Superannuation Funds Australia revealed a retired couple living a comfortable lifestyle needs to have saved a combined $690,000, and $595,000 for a single person. In Australia, a single person on an aged pension receives $1,149 per fortnight, and couples receive a combined payment of $1,732 per fortnight.[3]
The ongoing demand for financial solutions in retirement is reflected in Heartland’s FY2025 financial results, with a 15.5% increase in New Zealand Reverse Mortgage Receivables (up $165 million from 30 June 2024 to $1.23 billion as at 30 June 2025) and a 18.5% increase in Australian Reverse Mortgage Receivables (up AU$309 million from 30 June 2024 to AU$1.98 billion as at 30 June 2025).
Errol met Palka Kumar, a reverse mortgage consultant at Seniors First, to speak to him about the benefits of reverse mortgages. She is one of more than 2,700 accredited brokers who work with Heartland Bank Australia, leveraging the bank’s intermediary distribution partnerships for optimal reach.
Palka has worked with Heartland Bank Australia for three years, helping to identify customers looking to access the equity in their homes through a reverse mortgage. Receiving up to seven new appointments every week, Palka said there are still many myths around reverse mortgages.
“Reverse mortgages are a practical and sensible option for older people who are struggling with the rising cost of living. Many retirees have a significant portion of their wealth tied up in their homes, but limited cash flow to cover day-to-day expenses, health care or unexpected costs,” she said.
“The biggest challenge for older Australians is that most traditional lenders do not cater to their needs. Once income is reduced to the pension or casual work, it becomes very difficult to qualify for standard loans.”
Meeting the unique financial needs of those aged over 60 years, who are in or entering retirement, is a priority for Heartland, with growth and innovation at the forefront of this focus. As the leading reverse mortgage provider in both countries, with an estimated 92% market share in New Zealand, and 40% market share in Australia,[4] Heartland estimates the total addressable market to be $170 billion in New Zealand and $600 billion in Australia[5], highlighting a significant untapped potential.
“My pension is not enough. With all the bills I need to pay, and the rise of cost of living, I needed this loan,” Errol said. “I have lots of health bills to pay, despite being covered by private health insurance. I’ve also had stents in my heart for the past 10 years.”
With a Reverse Mortgage from Heartland Bank Australia, Errol has found the financial freedom to age in place. Now, Errol plans to buy a new car and renovate his house with the necessary attachments to support his wife, who has had both of her knees reconstructed.
“We don’t want to go into a nursing home. Now, because of this reverse mortgage, we can stay at home. It means the world to us,” he said.
An Australian Housing and Urban Research Institute study revealed 78-81% of Australians over 55 want to live in their own home as they age due to familiarity and connection to their local communities.[6]
This sentiment is echoed across the Tasman in New Zealand, where retired teachers Delwyn (75 years of age) and Dave (76 years of age) also faced the classic dilemma of aging in place versus financial flexibility.
Living in what they describe as their “perfect home”, the couple purchased their 11-acre property in 2006 which includes eight acres of native bush.
Like many retirees, they had significant equity tied up in their home but needed a financial solution that would provide peace of mind. The pair, who considered downsizing or subdividing their land due to a lack of savings, consulted with a friend who encouraged them to explore all options.
Delwyn decided to call Heartland Bank and from the beginning felt confident.
Never once feeling any pressure to proceed, she commended the clear communication and knowledge shared with her about reverse mortgages. As part of the application process, Delwyn had to seek independent legal advice and was encouraged to speak with family. She then discussed the option with her husband and family, who were all supportive.
According to a study by Massey University’s Financial Education and Research Centre in New Zealand, the cost of living is a significant concern for retirees. For a two person ‘no frills’ household in a metropolitan area the total weekly expenditure is $909.90.
A household which prioritises a more comfortable lifestyle, in a metropolitan area, can spend up to $1,739.85 per week – significantly exceeding the New Zealand Superannuation payment of $799.18 after tax every fortnight.[7]
“We have known for some time that we would need to make a decision about where we would live for the next few years,” Delwyn said.
“Our life here is perfect for us and we dreaded moving away. Since arranging our Reverse Mortgage with Heartland Bank, we are relieved and at peace knowing that we can stay.”
For Delwyn and Dave, a reverse mortgage was about more than just a transaction; it was about protecting their vision for retirement.
It gave them the ability to stay in their cherished home while still affording the freedom to pursue their passions: from a road trip through New Zealand’s South Island, to a trip across the Tasman to see their favourite rugby league team play. This was all made possible while ensuring their long-term savings were kept safe.
“This decision to take out a reverse mortgage has taken the pressure right off us and it is a great feeling to know we can now do the things we really want to do,” she said.
To date, Heartland has enabled more than 52,500 Australians and New Zealanders to live with greater financial freedom, turning home equity into a valuable tool for a more comfortable retirement. With an aging population seeking solutions to remain in their home and maintain their independence as they age, there is a clear opportunity for Heartland to support more people through products like its Reverse Mortgage.
[1] Australian Institute of Health and Welfare 2024 Web Report: Older Australians Demographic profile, July 2024.
[2] Stats New Zealand Tatauranga Aotearoa, ‘New Zealand’s population likely to reach 6 million before 2040’, June 2025.
[3] Association of Superannuation Funds Australia, ‘Superannuation peak body: Retirement costs finally fall, just in time for Christmas’, December 2024.
[4] New Zealand Reverse Mortgage market share estimate based on Heartland Bank’s Reverse Mortgage lending and a combination of publicly available information and internal sources. Australian Reverse Mortgage market share estimate based on APRA ADI data and public statements and internal estimates for non-bank reverse mortgage lending.
[5] The total addressable market opportunity for reverse mortgages is a best estimate only and based on a combination of publicly available information and internal sources.
[6] Australian Housing and Urban Research Institute, ‘Older Australians and the housing aspirations gap’ final report, August 2019.
[7] Te Kunenga ki Pūrehuroa Massey University of New Zealand Financial Education and Research (Fin-Ed) Centre. News release, January 2025.