HomeEquity Bank's reverse mortgage portfolio surpasses $5 billion in valuation
TORONTO, June 17, 2021 /CNW/ - HomeEquity Bank, provider of the CHIP Reverse Mortgage, announced today that its portfolio of reverse mortgages under administration has recently surpassed $5 billion for the first time, further cementing the bank as Canada's undisputed market leader.
"This milestone is a testament to the tireless work our entire organization and our partners do every day. Since our founding, the goal has always been to help Canadian homeowners enjoy retirement on their terms through lending solutions that fit their individual needs," says Steven Ranson, HomeEquity Bank President and Chief Executive Officer. "This record-setting growth demonstrates the appetite for reverse mortgage products is growing as millions of homeowners 55 and older are recognizing the tremendous value and flexibility they provide."
Surpassing the $5 billion figure was fuelled by another record-breaking year in reverse mortgage originations – $830 million in total in 2020, marking a 39% increase in growth over the past three years. Additionally, HomeEquity Bank has been able to find attractive liquidity sources to support growth through the reverse mortgage loan sale program. With more than 35 years of experience in reverse mortgage underwriting, HomeEquity Bank is also now spearheading an optimized lending model that delivers competitive offerings for Canadian homeowners 55 and up in the country's largest markets.
Strong market dynamics, backed by the overwhelming desire for Canadians to age in place, means the reverse mortgage sector is poised to grow by another $1 billion dollars in 2021 alone. Yvonne Ziomecki, Chief Marketing Officer and Executive Vice President at HomeEquity Bank, points to the fact that Canadians 55 and up are increasingly turning to their homes to access equity, with 40% of them stating they'd rather stay put than downsize in Canada's current red-hot housing market.
"We've conducted a number of national surveys over the past year and we've found that more than a quarter of homeowners 55-plus would consider tapping into their home's equity to help fund retirement," says Ziomecki. "Not only that, but 45% of older homeowners say leveraging the equity in their homes should be a core component of retirement planning."
It's clear this demographic is eager to stay in the homes they love and are looking for sensible financial solutions like the CHIP Reverse Mortgage to make their dreams a reality.
About HomeEquity Bank
HomeEquity Bank is a Schedule 1 Canadian Bank offering the CHIP Reverse Mortgage and CHIP Open solutions. The company was founded more than 30 years ago as an annuity-based solution addressing the financial needs of Canadians who wanted to access the equity of their top asset – their home. The Bank is committed to empowering Canadians' age 55 plus to live the retirement they deserve, in the home they love. HomeEquity Bank is a portfolio company of Birch Hill Equity Partners Management Inc., a mid-market private equity firm based in Toronto with more than $3 billion in capital under management. For more information, visit www.chip.ca
SOURCE HomeEquity Bank
Morgan McLellan, [email protected], 647-802-4825 or; Yvonne Ziomecki, [email protected], 416-554-1669
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