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Having struck the deal earlier in the month, Household Capital announced that the acquisition from Macquarie had completed, with affected customers set to transition to the lender’s specialist retirement funding platform.
The purchase follows a period of rapid growth for Household Capital, with its loan book doubling since 2023 and total loan originations surpassing $1 billion. The company said the deal further strengthens its position in a market it believes is continuing to expand.
Household Capital CEO and founder Dr Josh Funder described the acquisition as “a defining vote of confidence” in both the lender and Australia’s equity release sector.
"It’s a clear and timely signal that our sector is sustainable and expanding," he added.
Market gathers momentum
The acquisition comes more than a decade after Macquarie Bank first moved into the reverse mortgage market.
In 2014, the bank launched a reverse mortgage and accommodation bond loan targeting retirees aged 70 and over, with both products offering a maximum loan-to-value ratio of 45 per cent.
Macquarie later withdrew its reverse mortgage offering from the market in June 2017, alongside Westpac.
But as one lender steps back, others come forward.
The acquisition is the latest sign of growing activity and innovation in the reverse mortgage market, following a series of new product launches and lender expansions in recent months.
Last month, non-bank lender Homesafe rolled out its equity release product to home owners across regional Victoria. Meanwhile, Brighten also fast-tracked the launch of its new reverse mortgage products, while Clinch has taken a different approach with its Easy Equity offering.
Most recently, a new non-bank lender led by Volt Bank co-founder Luke Bunbury announced plans to enter the retirement lending sector, with a new product designed to challenge traditional reverse mortgages.
Interest among borrowers
The growing competition among lenders, however, has been met with a similar growth in demand from borrowers.
A nationwide survey by Deloitte revealed Australian reverse mortgages totalled around $5.5 billion as at 30 June 2025, representing more than 40,000 households with a reverse mortgage product.
What’s more, Household Capital also pointed to the significant level of housing wealth held by older Australians, noting those aged 60 and over collectively hold more than $3 trillion in residential property wealth.
Data also shows that borrower interest has continued to grow.
Recent data from reverse mortgage brokerage Seniors First found that interest for reverse mortgage loans through the Commonwealth’s Home Equity Access Scheme increased by 21 per cent over the past 12 months.
According to Household Capital, demand for equity release is being driven by retirees seeking additional income, refinancing, medical expenses, home renovations, travel, and everyday living costs while remaining in their homes.
Most recently, softening house prices have also contributed to interest.
Another survey by Seniors First found 33.7 per cent of Australians aged over 55 had put off plans to sell their home, while more than six in 10 (62.2 per cent) said they would prefer to release equity through a reverse mortgage rather than sell in the current market.
However, the growing popularity of the product has also brought its complexity into greater focus.
Separate research conducted by Seniors First found more than 150 key differences between Australia’s top four reverse mortgage lenders, spanning product features, lender policies, post-settlement procedures, and future access to funds.
Loan book doubles
Established in 2016 and originating loans since 2019, Household Capital said the value of its loan book has doubled over the past three years, supported by an expanding wholesale funding program that includes institutional investors and securitisation.
The lender said it has recorded average portfolio growth of around 40 per cent year on year, with around half of its customers being single and almost two-thirds of those customers women.
Funder said many older women had lower superannuation balances after spending time out of the workforce or working part time, making home equity an increasingly important source of retirement funding.
He said the company expected demand for equity release products to continue as more Australians looked to unlock wealth tied up in their homes while ageing in place.
“In our experience, Australian retirees are prudent and want to have enough to live on, enough for a rainy day, and enough to think ahead to aged care. But – fortunately – most Australians live long and healthy lives by international standards, so accessing home equity alongside super can help them achieve financial adequacy,” Funder said.
[Related: 5% Deposit Scheme welcomes first non-bank lender]
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