Toronto-based HomeEquity Bank, the leading provider of reverse mortgage loans in Canada, announced this week that its total reverse mortgage portfolio surpassed $6 billion CAD (roughly $4.4 billion USD) in 2022, largely due to strong origination volume growth that surpassed $1 billion CAD (approximately $745 million USD) for the second consecutive year.
The portfolio growth, which includes servicing, comes out to a 30% increase over the figure recorded in 2021, the company said this week. HomeEquity Bank was recognized in the Report on Business ranking of Canada’s top growing companies for the third time.
“Canadians have traditionally focused on the dollar value of their home but now I believe people are starting to see the value their home provides as they look to manage their finances in retirement,” said Steven Ranson, HomeEquity Bank president and CEO. “We are proud of our achievements in 2022, all of which are a testament to the work of our talented team and the success of our business strategy.”
According to a survey conducted by the company last year, 95% of Canadians at or over the age of 45 reported that aging in place would allow them to maintain their independence in later life.
Similarly to the American reverse mortgage market, the bank and its competitors describe having a business conducive to growth due to demographic trends. Over 861,000 people aged 85 and older appear in the nation’s 2021 census, more than twice the number from 2001.
Canadians aged 85 and older are “one of the fastest-growing age groups, with a 12% increase from 2016,” according to the government’s statistics arm. 2.3% of the population is at or over the age of 85. according to the 2021 census.
HomeEquity Bank has caught the attention of the American reverse mortgage industry due to its unique advertising. Company leaders presented some of their most popular TV ads at a National Reverse Mortgage Lenders Association (NRMLA) annual meeting in 2019. The company also engages with prominent spokespeople, including a famous American former fraudster in an effort to protect seniors from being scammed.
However, while the business has grown significantly in recent years, Canadian regulators have also taken note. The nation’s Office of the Superintendent of Financial Institutions (OSFI), the body charged with reinforcing the public’s confidence in the Canadian financial system, said last May that it would be keeping a watchful eye on the growth of the industry and how it manages its older clients.