HomeEquity Bank says reverse mortgage originations topped $1 billion in 2022 for the second year in a row.HomeEquity Bank reported on Wednesday that reverse mortgage originations topped the $1 billion mark in 2022 for the second year in a row.
“People are living longer, they haven’t saved enough, and now inflation has made the cost of everything more expensive.” HomeEquity’s originations in 2019 and 2020 were $820 million and $830 million, respectively. That surpassed the $1 billion mark in 2021 and 2022.Reverse mortgages have their advantages. They allow owners to “age in place” for longer, provide extra income and there are no monthly payments since the loan and interest are repaid upon selling the home. The additional money from a reverse mortgage also doesn’t impact government benefits such as Old Age Security or the Guaranteed Income Supplement.
HomeEquity Bank and Equitable Bank are the only institutions in Canada that offer reverse mortgages. HomeEquity’s reverse mortgage portfolio is the biggest at over $6 billion.