HomeEquity Bank originated $820 million in new reverse mortgages in 2019
Expects another strong year in 2020 as interest and demand continue to grow
TORONTO, Jan. 14, 2020 /CNW/ - HomeEquity Bank, provider of the CHIP Reverse Mortgage™, announced today that it originated $820 million in new reverse mortgages in 2019, marking a record year for the company and reinforcing the unique value proposition that reverse mortgages offer to Canadians seeking to enjoy a comfortable and financially secure retirement.
"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."
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 proud to be listed on the Growth 500 list four years running as one of Canada's fastest growing companies and have also been named to The Globe and Mail's list of top growing companies in 2019.
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.