Have you heard about reverse mortgages yet? Here in Canada, the demand for reverse mortgage products is growing every day, and for good reason! As a large part of Canada’s population continues to age into retirement, many people are turning to reverse mortgages to unlock their home equity. As of October 2018, the annualized pace of reverse mortgage debt growth was at $3.425 billion, which is the highest it has been in almost 8 years!

According to real estate publication Better Dwelling, this growth is all due to Canadians. The growth sets a new record at 57.46% annualized pace of growth, which is an enormous jump from the previous year. Along with this, the monthly increase was also 844% higher than the median monthly pace of growth! Wow! They also noted that it seemed as though Canadians were slowing down right before this massive jump happened.

Big Increase In Reverse Mortgages

HomeEquity Bank, one of Canada’s largest lenders, also reported a 26% increase in reverse mortgage originations from 2017 to 2018, showing a generally healthy Canadian market. HomeEquity Bank also reported their 5th consecutive year with over 20% growth! This is not just simply due to increased bank and broker referrals, this also means that Canadians love the reverse mortgage and find it beneficial for retirement planning, unexpected costs, or other expenses.

Why All The Love?

So, why do Canadians love the reverse mortgage so much? Unlike an American reverse mortgage, the qualifying age in Canada is 7 years lower at 55, making it more accessible. There are some requirements in Canada that are not needed in the US, such as the requirement for the applicant to obtain legal advice before securing a product. Reverse mortgages are not granted based on traditional items such as credit checks, either. The best part about a reverse mortgage is that it allows you to borrow more than half of your home’s value without having to make any monthly payments until you move or sell.

What are you waiting for? The numbers show that many Canadians have already unlocked their home equity with a reverse mortgage, and you can too! Contact me today to get started.