HOMEQ promo eliminates closing fee

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The channel’s leading reverse mortgage provider is sweetening the pot for brokers and their clients by suspending closing fees on its five-year product indefinitely.

“Starting November 6, we are waiving the sign-up fee of $795 on our five-year reverse mortgage,” said Greg Bandler, senior VP for HomeEquity, referencing the lender’s five-year at 5.49 per cent. “For brokers, this means one less impediment for their clients.”

The HOMEQ announcement coincides with the bank’s conclusion of an earlier promotional program, started in September and slashing the 4.95 per cent interest on its one-year term to 4.25 per cent.

“We had a very good response on that promo,” said Bandler. “Although we can’t attribute it solely to the promo, our business grew by 30 per cent during that period.”

That growth helped lift originations, coming off an 18-per-cent slip in Q2.

New mortgage originations for the three months ending June 2012 stood at $57.1 million, or $12.6 million lower than Q2 2011. Despite its increasingly competitive rates, for the three months ending June 2012, the bank’s new mortgage originations stood at $57.1 million – that’s $12.6 million less than figures in Q2 of the previous year.

Yesterday Bandler expressed optimism over HOMEQ’s growing relationship with the broker channel and the bank’s prospects for the coming year.

“The aging Baby Boomer population continues to grow,” he said. “Increasingly, we find brokers very instrumental in helping those aged 60 and above seek loans against their homes.”

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