Canadians aged 65 or older are projected to represent 23% of the total population by 2030
The mortgage industry is ideally placed to leverage the growing market influence of Canada’s eldest consumers – in particular, through the power of the reverse mortgage.
“It may not be the right product for everybody, but we want more and more people to know about it and more and more people to consider it,” said Yvonne Ziomecki, executive vice president of premier reverse mortgage lender HomeEquity Bank.
“I think there’s so much opportunity in reverse mortgages,” Ziomecki said.
The Canadian government has estimated that the number of Canadians aged 65 or older will swell from at least six million in 2014 (15.6% of the total population) to roughly 9.5 million in 2030 (23% of the projected total population). This trend is expected to significantly boost the demographic’s collective wealth, as well.
“Money is meant to enhance our lifestyle and our relationships, and money locked in a savings account or a house doesn’t do anything,” Ziomecki said. “To the extent you can get some money out of your house to help your adult children buy a house – or help them through COVID, or start a renovation in your own home or take a trip – that’s what life is all about.”
Read more: Mortgage demographics seeing a gradual shift – analysis
These gifts are increasingly serving as early inheritances to adult children, said Agostino Tuzi, senior vice president at Pillar Financial.
“We’re seeing more and more people using reverse mortgage funds as living inheritances so they can see their family enjoy the benefits those funds can provide,” Tuzi said. “It’s not so much about what Canadians need from a reverse mortgage option, but what they want from the equity in their home – and that’s often to help support their family.”
Tips on a good place to start for those who have senior clients looking for ways to best utilize their long-term wealth can be viewed here.
