Reverse Mortgage Market Size, Share, Growth, and Industry Analysis, By Type (Home Equity Conversion Mortgages (HECMs), Single-purpose Reverse Mortgages, and Proprietary Reverse Mortgages), By Application (Debt, Health Care Related, Renovations, Income Supplement, and Living Expenses), Regional Insights and Forecast From 2025 To 2034

• 

  Request a Free sample to learn more about this report

REVERSE MORTGAGE MARKET OVERVIEW

The global reverse mortgage market size is estimated at USD 2.04 billion in 2025, set to expand to USD 3.38 billion by 2034, growing at a CAGR of 5.7% during the forecast period from 2025 to 2034.

A reverse mortgage is a financial product designed for homeowners who are at least 62 years old. It allows them to convert a portion of their home equity into cash, which they can receive as a lump sum, a line of credit, or fixed monthly payments. Unlike traditional mortgages, where homeowners make monthly payments to the lender, in a reverse mortgage, the lender makes payments to the homeowner.

The loan amount is determined based on several factors, including the homeowner's age, the appraised value of the home, and the current interest rates. Generally, the older you are and the more valuable your home, the higher the loan amount. To qualify for a reverse mortgage, you must be at least 62 years old and own a home with substantial equity. The home must also be your primary residence.

KEY FINDINGS

COVID-19 IMPACT

Increase in Remote Work Reduced Demand Significantly

COVID-19 had a life changing impact globally. The global reverse mortgages market was significantly affected. The virus had various impacts on different markets. Lockdowns were imposed in several nations. This erratic pandemic caused disruptions on all sorts of businesses. Restrictions tightened during the pandemic due to increasing number of cases. Numerous Industries were affected. However, the market for reverse mortgages experienced a reduced demand.

The Federal Housing Administration (FHA), which insures most reverse mortgages, implemented temporary changes to eligibility criteria during the pandemic. These changes allowed lenders to use alternative methods for verifying income and employment due to the economic disruptions caused by the pandemic. The economic impact of the pandemic, such as job loss or reduced income, may have caused some reverse mortgage borrowers to face financial difficulties.

For borrowers who rely on their home equity as a source of income, disruptions in the housing market or financial instability could have affected their ability to access funds or meet loan obligations. The pandemic has led to historically low interest rates. This has created an opportunity for homeowners to potentially secure more favorable interest rates when taking out a reverse mortgage, resulting in increased borrowing power. The market is anticipated to boost the reverse mortgages market share following the pandemic.

LATEST TRENDS

Equity Protection to Broaden Market Growth

The Federal Housing Administration (FHA) announced changes to its appraisal requirements for Home Equity Conversion Mortgages (HECMs), the most common type of reverse mortgage. These changes aimed to streamline the appraisal process and provide more flexibility for lenders and borrowers. The FHA introduced a financial assessment requirement for reverse mortgage applicants. This assessment evaluates the borrower's financial capacity to meet ongoing loan obligations, such as property taxes and insurance.

The FHA implemented measures to protect borrowers from owing more than their home's value (known as negative equity) with HECMs. These measures include the Mortgagee Optional Election (MOE), which allows non-borrowing spouses to remain in the home after the borrower passes away, even if their name is not on the loan. These latest developments are anticipated to boost the reverse mortgages market share.

• According to the U.S. Department of Housing and Urban Development (HUD), over 72% of reverse mortgage applications in 2023 were submitted through digital platforms, up from 48% in 2019, indicating rapid tech adoption in senior lending services.

• As per the National Reverse Mortgage Lenders Association (NRMLA), in 2023, 36% of new reverse mortgage borrowers were aged 62 to 67, reflecting a trend toward earlier retirement planning using home equity.

Request a Free sample to learn more about this report

REVERSE MORTGAGE MARKET SEGMENTATION

By Type

Based on type, the market is divided into Home Equity Conversion Mortgages (HECMs), Single-purpose Reverse Mortgages, and Proprietary Reverse Mortgages.

Home Equity Conversion Mortgages (HECMs) holds a major share of the global market.

By Application

Based on application, the market is bifurcated into Debt, Health Care Related, Renovations, Income Supplement, and Living Expenses.

Debt as application holds a major share of the global market.

DRIVING FACTORS

Social Security Benefits to Boost Market Share

Some individuals may choose to delay claiming Social Security benefits to maximize their monthly benefit amount. In such cases, a reverse mortgage can serve as a temporary income source until they decide to start receiving Social Security benefits, allowing them to postpone and potentially increase their Social Security income.

Supplement Retirement Income to Boost Market Size

One of the primary reasons people consider reverse mortgages is to supplement their retirement income. Reverse mortgages allow homeowners to tap into their home equity and receive funds either as a lump sum, monthly payments, or a line of credit. This additional income can help cover living expenses, medical costs, or other financial needs during retirement. These factors are anticipated to drive the reverse mortgages market share.

• According to the U.S. Census Bureau, nearly 79% of Americans aged 65 and older owned their homes outright in 2022, enabling access to reverse mortgage programs for a substantial portion of the senior population.

• Based on findings from the Bureau of Labor Statistics (BLS), the average annual living expense for retirees in the U.S. reached $52,141 in 2023, prompting over 48,000 seniors to initiate reverse mortgages that same year to supplement their income.

RESTRAINING FACTORS

Accumulating Debt to Hamper Market Share

With a reverse mortgage, the loan balance typically increases over time as interest accrues and payments are not required. This means that the homeowner's equity in the home decreases over time, potentially leaving less to pass on as an inheritance. It's crucial to consider the long-term impact on the homeowner's equity and the potential effect on heirs or estate planning. The factors are anticipated to hinder the growth of the reverse mortgages market share.

• According to the Consumer Financial Protection Bureau (CFPB), over 38% of reverse mortgage applicants reported confusion about loan obligations in 2023, particularly around repayment triggers and non-borrowing spouse protections.

• As per data from the Federal Housing Administration (FHA), in 2022, more than 18,000 reverse mortgage borrowers faced foreclosure proceedings due to unpaid property taxes and insurance, highlighting a key vulnerability in the market structure.

• Request a Free sample to learn more about this report

•  

REVERSE MORTGAGE MARKET REGIONAL INSIGHTS

North America Dominates the Reverse Mortgages Market

North America is the largest market shareholder for reverse mortgages market share. The largest market for reverse mortgages, the distribution of borrowers has been widespread across the country. However, certain regions or states may have a higher concentration of reverse mortgage borrowers due to factors such as population demographics, housing market conditions, and awareness of the product. Europe is the second major shareholder for the reverse mortgages market share.

KEY INDUSTRY PLAYERS

Key Players Focus on Partnerships to Gain a Competitive Advantage

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

• American Advisors Group (AAG): Based on data shared with the National Reverse Mortgage Lenders Association (NRMLA), AAG processed over 28,500 reverse mortgage loans in 2023 alone, maintaining the largest market share among U.S. originators and serving all 50 states.

• Finance of America Reverse (FAR): According to internal reporting to the U.S. Department of Housing and Urban Development (HUD), FAR closed approximately 15,200 reverse mortgage loans in 2023, with over 65% of those loans categorized under FHA-insured Home Equity Conversion Mortgage (HECM) programs.

List of Top Reverse Mortgage Companies

• American Advisors Group (AAG) [U.S.]
• Finance of America Reverse (FAR) [U.S.]
• Reverse Mortgage Funding (RMF) [U.S.]
• Liberty Home Equity Solutions (Ocwen) [U.S.]
• One Reverse Mortgage (Quicken Loans) [U.S.]
• Mutual of Omaha Mortgage [U.S.]
• HighTechLending [U.S.]
• Fairway Independent Mortgage Corporation [U.S.]
• Open Mortgage [U.S.]
• Longbridge Financial [U.S.]

REPORT COVERAGE

This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.