Reverse mortgages are gaining in popularity across the country, as evidenced by one major lender’s record originations in 2014.
Bank announced today its 2014 originations grew by 23 per cent year-over-year to $309 million, and its portfolio of reverse mortgages is now over $1.7 billion.
This growth is expected to continue.
"With the current demographic trends and extended life expectancy we project reverse mortgage originations to grow at 25 – 30 per cent annually over the next few years" Steven Ranson, president and CEO of HomEquity
Bank focuses its services on seniors who want to alleviate the stress of debt, improve lifestyle, maintain their standard of living, and pay for unplanned expenses.
Its reverse mortgages are offered to Canadians 55 and older.
"We are seeing an increased demand for reverse mortgages as more Canadian seniors look to this solution to address concerns over quality-of-life issues, insufficient savings and pension shortfalls," Ranson said.