Reverse Mortgage Market Report 2025

The reverse mortgage market size has grown strongly in recent years. It will grow from $1.79 billion in 2024 to $1.91 billion in 2025 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to an increase in the aging population, a rise in home values, a rise in low-interest rates, increased financial awareness, a rise in desire for supplemental retirement income, a rise in homeownership trends, and a rise in government-backed loan programs.

The reverse mortgage market size is expected to see strong growth in the next few years. It will grow to $2.52 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to rising demand for retirement income solutions, growing interest in financial literacy programs, rising demand for customized financial solutions, rising demand for long-term care funding solutions, and rising popularity of home sharing and equity release options. Major trends in the forecast period include the integration of virtual reality for property valuation, the development of online educational platforms for consumer awareness, enhanced cybersecurity measures, blockchain technology for secure transactions, and artificial intelligence in loan processing.

The forecast of 7.2% growth over the next five years reflects a slight reduction of 0.2% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through stricter qualification requirements, as home equity calculation systems and life expectancy modeling tools, largely developed in Japan and South Korea, become cost-prohibitive for some lenders to maintain. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The rising home values are expected to drive the expansion of the reverse mortgage market. Home values represent the current market price of a property, influenced by factors such as location, condition, and demand, while equity refers to the difference between the home's market value and any outstanding mortgage balance, indicating the portion owned by the homeowner. The growth in home values and equity is fueled by factors such as low interest rates, strong demand in desirable areas, economic growth, and enhancements in local infrastructure and amenities. Higher home values lead to increased equity, allowing homeowners to access more funds through reverse mortgages. For example, in December 2024, the House of Commons Library, a UK-based government agency, reported a 3.4% increase in house prices between October 2023 and October 2024. Additionally, on a seasonally adjusted basis, average house prices rose by 0.5% from September to October 2024. As a result, the increase in home values is driving the growth of the reverse mortgage market.

Companies in the reverse mortgage sector are focusing on innovative financial solutions to address the rising demand for home equity access. This includes the development of customizable products, enhancements to digital platforms for an improved customer experience, and expanded loan options to meet diverse financial needs. For instance, in April 2024, Portfolio+ Inc., a Canada-based software company, introduced the Portfolio+ reverse mortgage product. This solution is designed to help financial institutions meet the growing demand for reverse mortgages, allowing homeowners aged 55 and older to access tax-free equity in their homes. The product features customizable terms and interest rates, enabling lenders to tailor their offerings to individual clients while ensuring seamless end-to-end processing from origination to funding.

In April 2023, Finance of America Companies Inc., a US-based financial services company, acquired American Advisors Group for an undisclosed amount. This acquisition is aimed at expanding Finance of America’s portfolio by developing modern retirement solutions that utilize home equity, catering to the evolving financial needs of seniors. American Advisors Group, a US-based company, specializes in providing direct-to-consumer reverse mortgage and home equity solutions.

Major players in the reverse mortgage market are Fairway Independent Mortgage Corporation, HomeBridge Financial Services Inc., New American Funding, Movement Mortgage LLC, PHH Mortgage Corporation, American Pacific Mortgage Corporation, The Federal Savings Bank, American Financial Network Inc., Bay Equity LLC, Plaza Home Mortgage Inc., Open Mortgage, Longbridge Financial LLC, Land Home Financial Services Inc., Homestead Funding Corp., Mutual Of Omaha Mortgage, Salem Five Mortgage Company LLC, LeaderOne Financial Corporation, HighTechLending Inc., Advisors Mortgage Group LLC, Radius Financial Group Inc., South River Mortgage LLC, Guild Holdings Company, All Reverse Mortgage Inc.

North America was the largest region in the reverse mortgage market in 2024. The regions covered in reverse mortgage report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the reverse mortgage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The reverse mortgage market includes revenues earned by entities by providing services such as loan counseling, loan origination, repayment and closure, and servicing and administration. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.

A reverse mortgage is a loan designed for homeowners, typically aged 62 or older, that allows them to convert a portion of their home equity into cash without selling their property. The loan is repaid when the homeowner moves out, sells the home, or passes away.

The main types of reverse mortgages include home equity conversion mortgages (HECMs), single-purpose reverse mortgages, and proprietary reverse mortgages. HECMs, backed by the federal government, allow older homeowners to access a portion of their home’s equity while requiring them to meet specific age, property, and counseling requirements to ensure fair use. Reverse mortgages are used for various applications, including debt management, health care expenses, home renovations, income supplements, and living expenses. The primary end users are seniors, retirees, and homeowners seeking financial flexibility.

The reverse mortgage market research report is one of a series of new reports that provides reverse mortgage market statistics, including the reverse mortgage industry's global market size, regional shares, competitors with a reverse mortgage market share, detailed reverse mortgage market segments, market trends and opportunities, and any further data you may need to thrive in the reverse mortgage industry. This reverse mortgage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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