While Reverse mortgages have been available in Canada for almost three decades, one lender has seen interest grow by leaps and bounds in the last couple of years – and brokers have been driving that business.
“Mortgage brokers have a very loyal customer base with a solution oriented approach; they provide exceptional value to their clients,” says Steven Ranson, president and CEO of HomEquity
Bank. “HomEquity Bank’s broker business saw a tremendous growth of 39% last year. We also saw over 1,000 mortgage brokers send in referrals with an average deal size of $150,000.”
It is that success that Ranson saw mortgage brokers as the best channel to target in order to maximize the benefits of reverse mortgages for consumers nationally
“We’re in the process of completing all of the logistics behind Mortgage Broker Direct (to launch in mid-September) and our team will be ready for all of the challenges and successes that this new channel will bring,” he says.
The Mortgage Broker Direct platform will create the opportunity for mortgage brokers to be certified to sell reverse mortgages directly – a strategy Ranson hopes will transform the concept of a reverse mortgage into a more common solution for seniors with a financial need.
As Canadians age, live longer and face the realities of underfunded pensions and insufficient savings, their home continues to be their most valuable source of liquidity.