HomEquity Bank reported that origination volume of reverse mortgages increased to $206 million in 2010, up 87% from the year before.
Mortgage originations reached $47 million during the fourth quarter and as of December 31, 2010, the bank’s reverse mortgage portfolio surpassed $1 billion.
“Our reverse mortgage offering is now widely recognized as a mainstream financial solution,” said Steven Ranson, President and CEO. “We are seeing broad market demand for reverse mortgages as the demographic wave and other macro economic factors affect retirement trends in Canada.”
Now entering its 25th year of business operations, HomEquity Bank is the only national provider of reverse mortgages in Canada. Reverse mortgages are offered to Canadian homeowners 60 and older and have no income, credit or health qualifications. Unlike traditional loans, borrowers don’t have to service the interest or repay the principal for as long as they own their home and are living in it.
In addition to helping Canadian seniors access home equity through its direct-to-consumer distribution model, HomEquity Bank partners with all of the nationally chartered major Canadian banks, as well as credit unions, mortgage brokers, investment and financial planning firms to offer its reverse mortgage solution.
Earlier this week, RMD published an article that looked into the growth of reverse mortgages in Canada.