HomEquity’s reverse mortgage applications up 32.5% in 2017

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

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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%.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.