Reverse Mortgages are marking a new record year in 2019 . CHIP Reverse Mortgage is a mortgage product of HomeEquity Bank , Canadian leading reverse mortgage provider.
HomeEquity Bank announced that the reverse mortgages volume in 2019 passed $820 million mark and they are expecting a even stronger 2020, forecasting a solid grow in interest and demand in reverse mortgages.
“We’re incredibly proud of what we’ve accomplished in 2019, which was a year of firsts for the Bank as we continue to deliver on our mission of helping Canadians enjoy the best that retirement has to offer,” said Steven Ranson, HomeEquity Bank President and Chief Executive Officer. “Throughout the year, we continued to strengthen our market leading position as Canada’s largest reverse mortgage provider. In addition, our first sale of a portfolio of reverse mortgages created a new source of liquidity for our business as we continue to pursue profitable growth.”
HomeEquity Bank now administers a portfolio of approximately $4 billion in reverse mortgage loans. In December 2019, it sold approximately $75 million of portfolio loans to another Schedule 1 Canadian bank. This was the first such sale for the Bank and the first such transaction in Canada to involve reverse mortgages.
Interest in reverse mortgages in Canada continues to grow, driven by both demographic and economic factors. The number of Canadians aged 55 and over continues to increase, especially as advances in medicine, technology and preventive care enable people to live longer and healthier lives. At the same time, many in this cohort have not saved enough money to finance their desired lifestyle in retirement and also face workplace pension shortfalls.
Tapping into the equity built up in their homes is an appealing and effective way to help close that gap for many older Canadians currently planning or living in retirement. According to Statistics Canada, Canadians aged 55-64 have the highest rate of home ownership, at 76.3%, compared to 43.6% among those aged 20-34 and 70.1% among those aged 35-54. What’s more, research has shown repeatedly that nearly all Canadians would like to age in their current place of residence – something that can become a reality by tapping into home equity.
“We’re anticipating a very strong 2020, as interest and demand for reverse mortgages continues to grow,” Ranson said. “Our entire team is excited about the year ahead and building on our strong momentum.”
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