Macquarie Group has re-entered the reverse mortgage market after an absence of more than five years. Macquarie's banking and financial services division has launched a variable rate reverse mortgage and an accommodation bond loan.James Angus, a divisional director in the banking and financial services division, said Macquarie was responding to demand from brokers, who were especially keen to have an accommodation bond loan to offer clients.The reverse mortgage has a maximum loan amount of A$1 million and a maximum loan-to-valuation ratio of 45 per cent. The maximum LVR depends on the age of the borrower; for a 70-year old the maximum LVR is 20 per cent.The current interest rate is 6.7 per cent.The accommodation bond loan has been designed to provide a funding option for people moving into aged care. According to Macquarie the average bond in a low-level aged care facility in a metropolitan area is $350,000.Macquarie's accommodation bond loan has a maximum loan amount of $1 million, a maximum LVR of 45 per cent and a term of five years. In addition to covering the cost of the accommodation bond, the Macquarie loan will pay an annuity over the five years to cover aged care fees.Neither loan has an ongoing account management fee. All borrowers need to provide evidence that they have received financial and legal advice and all intermediaries have to complete Macquarie accreditation.According to the latest data on the reverse mortgage market, the value of outstanding reverse mortgages is around $3.5 billion.A report on the reverse mortgage market released by Deloitte and the Senior Australians Equity Release Association last September showed that there were $305 million of settlements in 2012 - down from $317 million in 2011 and $322 million in 2010.Deloitte's financial services partner, James Hickey, said he was confident about the future of the industry because the growth in the number of Australians reaching retirement age and the amount of household wealth tied up in the family home meant that there would be demand for alternative forms of equity release.Angus said brokers have been telling Macquarie their clients are asking for equity release products.