HomeEquity Bank, a Canadian federal bank and the leader of the nation’s reverse mortgage industry, announced on Tuesday that it has surpassed $1 billion CAD (roughly $792.5 million USD) in reverse mortgage originations for 2021. This is the first time it has ever reached such a threshold, and marks a 28% annual increase over its origination figure in 2020, according to an announcement by the company.
“The value of the bank’s total reverse mortgage portfolio under management now stands at $5.4 billon, further cementing its reputation as Canada’s undisputed market leader,” the announcement said.
Canada has seen demonstrable growth in its reverse mortgage industry over the past several years, with HomeEquity Bank leading the charge as the market leader in a nation with only three organizations able to provide reverse mortgage business to Canadians aged 55 or older.
“This continued strong growth demonstrates the relevance and importance of our financial solution in Canada. We are excited to continue fulfilling our purpose of helping Canadian homeowners aged 55 plus enjoy a financially secure retirement in the home they love,” said Steven Ranson, HomeEquity Bank president and CEO. “We are incredibly proud of our achievements in 2021, all of which are testament to the amazing work of our talented team and the success of our business strategy.”
American reverse mortgage professionals have long taken note of HomeEquity Bank’s novel approaches to marketing, including humor-oriented television advertising which raptured guests at a National Reverse Mortgage Lenders Association (NRMLA) Annual Meeting in 2019 and that has also enlisted a famous American former fraudster in an effort to protect seniors from being scammed.
The pandemic has also seen HomeEquity begin to make forays into the development of additional reverse mortgage products in its market, and the company even published an educational book about reverse mortgages to assist in combating misinformation about the product in Canada.
Last year, HomeEquity Bank announced that it will be acquired by the Ontario Teachers’ Pension Plan Board which is responsible for administering defined-benefit pensions for school teachers of Ontario, the Canadian province which is home to the city of Toronto.
“This is great news for HomeEquity Bank, our customers, partners, and employees,” HomeEquity Bank EVP of Marketing and Sales Yvonne Ziomecki told RMD in an email at the time. “It is a testament to the success of our business strategy, and to the amazing work of our talented team.”
While HomeEquity Bank and Canada’s Equitable Bank have long been the only two organizations offering reverse mortgages in Canada, late last year Toronto-based Bloom Finance Company also entered the Canadian reverse mortgage space.