More and more property-rich seniors are drawing from their equity
Updated numbers from the Office of the Superintendent of Financial Institutions showed that Canada’s total reverse mortgage debt load steadily went up from $3.035 billion in August to approximately $3.07 billion as of September.
OSFI noted that this can be partly attributed to National Bank’s accrual of over $427 million in reverse mortgage debt in November 2017.
The agency added that if senior borrowing rates hold true, reverse mortgages will continue to see growth over the next few years.
September’s level was 43.98% higher compared to the same time last year. While still quite high, however, a downward trend from the 46.32% peak reached in February 2017 has been apparent.
Read more: Canadian reverse mortgage growth is decelerating – OSFI
An analysis by TransUnion released last September reported that during the first quarter of this year, the volume of mortgages issued to Canadians age 73 years and older increased by 63% year-over-year.
To compare, activity among baby boomers (54-72 years old) grew by a relatively timid 18%. Meanwhile, originations fell by 19% in the 24-38 age bracket and 22% in the 18-23 demographic.
