elderly-couple-retired-seniors

Reverse mortgage applications are on the rise for at least one lender.

Read: UPDATED: Several banks hike five-year fixed mortgage rates

HomEquity Bank posted reverse mortgage originations of $608 million for 2017. (An origination involves the process of applying for and processing a loan application.)

By email, a bank spokesperson said the 2017 originations represent a 32.5% increase from 2016. That’s up from an increase of 26% previously, year-over-year (2016 compared to 2015).

The increase was driven by growing consumer familiarity with the firm’s reverse mortgage product and “the growing need for consumers to finance their retirement in new ways,” says the bank in a release.

“As the Canadian population continues to age, there is clear demand among Canadians aged 55 and older to unlock the equity they’ve accrued in their homes,” says Steven Ranson, HomEquity Bank’s president and CEO, in the release. He adds that the bank has “a positive outlook for continued, long-term growth in 2018 and beyond.”

The results also reflect a strong partnership with Canada’s mortgage brokers. In 2017 brokers were the bank’s fastest-growing referral source, says the release, increasing by 55%.

Also read:

What 70-somethings expect from their advisors

Protect clients from risky syndicated mortgages

Originally published on Advisor.ca
Add a comment

Have your say on this topic! Comments are moderated and may be edited or removed by
site admin as per our Comment Policy. Thanks!