Impressive performance from one channel player speaks to the growing popularity of its major product among Canadians and, indeed, brokers.
Bank reported $459 million in reverse mortgage sales in 2016 – a 26% increase year-over-year.
“We are very proud of the growth we’ve attained in 2016,” said Steven Ranson, president and CEO, at HomEquity Bank. “At a time of remarkable appreciation in real estate values, we are privileged to help Canadian seniors access that equity. We look forward to continuing our track record of year over year growth for 2017.”
That growth speaks to the growing reliance on reverse mortgages by aging Canadians to tap into home equity as a way to gain access to cash.
It also identifies an opportunity for brokers to help clients who may have such a need.
Indeed, HomEquity credits its brokers with helping it bolster its reverse mortgage sales.
“We’re very grateful for how engaged the broker community has become with the product,” Yvonne Ziomecki, senior vice president, marketing and sales for HomEquity, told MortgageBrokerNews.ca. “We couldn’t ask for better partners.”
According to the bank, its broker business has grown 48% year-over-year, thanks in part to the introduction of its Mortgage Broker Direct service in late 2015.
“This service offers continued education credits and an official designation for approved brokers,” HomEquity said in the release. “Also in 2016, requests for product information increased by 83 per cent as a result of direct client outreach through television advertisements and online engagement.”
With an aging population – and lack of competition in the sector – HomEquity’s CHIP Reverse Mortgage will likely continue to see its popularity increase in the coming years.