HomeStart Finance: Enabling housing transitions for more people, in more ways, as we age
Project Overview
HomeStart Finance (HSF) partnered with research experts Global Centre for Modern Ageing® (GCMA), to explore opportunities to improve and innovate the home equity release market in the study 'Enabling Housing Transitions for More People in More Ways as We Age'.
HSF recognised the importance of an ageing demographic and acknowledged the need to conduct research to understand the market and opportunities.
The following objectives were identified:
Understand the consumer journey regarding housing and financing transitions;
Understand why people do (not) consider/use seniors’ equity loans;
Determine market opportunity;
Design and test potential solutions.
GCMA designed a research project to provide HSF with insights surrounding older customers and ultimately a basis for co-designing a new product or reimagining existing products.
“The research has given us great insights into how we can continue to work on new initiatives to broaden the range and appeal of options that are available to people as they reach retirement that meet their individual needs and circumstances.”
The Trial
The GCMA undertook a multi-methods approach including:
A desktop review of existing research into equity release;
Journey mapping with 40 South Australians, including HSF customers and those who recently undertook a housing transition;
An online survey with 518 South Australian homeowners aged 55 or older; and
A market analysis determining the size of various potential markets within South Australia.
Outcomes
The research revealed that attitudes towards reverse mortgaging were mixed, with some holding quite negative views towards the concept and others being open and more receptive to the idea. Of the customers who we spoke with who had taken a reverse mortgage told of the freedom and independence it allowed them in their retirement.
The research revealed that many misconceptions surround the concept of reverse mortgaging: 67% of those who would consider using one had concerns regarding losing their home and 48% worried about owing more than the value of their property.
The research findings and insights have prompted HSF to consider the essential elements of future communications regarding home equity products. The GCMA will research the attitudes, beliefs and perceptions of older Australians seeking insights that guide communication strategies.
More Information
To learn more about this case study, and how the Global Centre for Modern Ageing® can support your business, contact our knowledgeable team today on +61 8 6117 5510.
