First portfolio sale for HomeEquity Bank, first time reverse mortgage loan portfolio sold in Canada
Sale creates opportunity for other sales, new funding source for growth, enhances profitability
TORONTO, Dec. 18, 2019 /CNW/ - HomeEquity Bank today announced that it has sold about $75 million of reverse mortgages to another Schedule 1 Canadian bank. This is the first-ever sale of reverse mortgages by HomeEquity Bank and the first such transaction in Canada involving reverse mortgages.
"This transformative deal paves the way for creating a new market for originating and selling reverse mortgages in Canada, similar to opportunities available to U.S. and U.K. investors," said HomeEquity Bank EVP and Chief Financial Officer Atul Chandra. "It creates a new source of liquidity to support our continuing growth, in addition to further enhancing the profitability of our business."
The sale creates the opportunity for similar transactions with other potential investors and underscores HomeEquity Bank's clear leadership in the reverse mortgage sector that enables Canadians to enjoy comfort and financial security in retirement.
About HomeEquity Bank
HomeEquity Bank is a Schedule 1 Canadian Bank offering the CHIP Reverse Mortgage solution. The company was founded over 30 years ago as an annuity-based solution addressing the financial needs of Canadians who want to access the equity of their top asset – their home. HomeEquity Bank is committed to empowering Canadians age 55 plus to live the retirement they deserve, in the home they love.
HomeEquity Bank is recommended by The Canadian Association of Retired Persons (CARP) and The Royal Canadian Legion. CARP is Canada's largest non-profit, non-partisan advocacy association for Canadians As We Age. The Royal Canadian Legion is Canada's largest Veteran support and community service organization, honouring those who served.
SOURCE HomeEquity Bank
For further information: Morgan McLellan, Provident Communications, email: [email protected] or cell: 647-802-4825