Vivienne Gauci on how HomeEquity Bank responds to its target market's needs
Paying off a mortgage can be complicated for people in their 50s, but HomeEquity Bank makes the experience easier by giving this market segment exactly the sort of assistance they need. This, in addition to providing reverse mortgages for over three decades, is the advantage that has led to the bank’s 5-Star Mortgage Products award in 2022.
“[At] this stage in life, what customers need in our products is a way to maintain independence, to have a level of financial freedom,” said Vivienne Gauci, HomeEquity Bank’s senior vice president of marketing and customer experience, in this interview with CMP’s Fergal McAlinden.
HomeEquity Bank designs its products in a way that considers the needs of people aged 55 and above, who may be planning their retirement, home renovation, travel, or healthcare, as well as creating a legacy for their children and grandchildren.
HomeEquity Bank’s track record in servicing this target demographic had resulted in “a high degree of trust” with its client base and broker partners, said Gauci. This strong partnership enables the bank to develop products that provide safety and security for its customers. Gauci said the bank also educates its clients about how their products work, applying an independent legal assessment process and no negative equity guarantee.
In creating HomeEquity Bank’s products, an important factor is the role of mortgage brokers.
“We keep mortgage brokers in mind and also rely on their feedback to improve our products over time,” said Gauci. “[In addition to doing] research and [listening] to our partners’ feedback, we’re able to make a really, really strong team when it comes to servicing this customer base. In fact, one of our more recent product launches, our open product, was a direct result of feedback from the broker community.”
She added that the pandemic changed the market’s attitude and prompted the 55-and-above demographic to think about ageing in their own homes. HomeEquity Bank’s research showed that only 12% of those polled had enough money for home health care in old age.
“What we’ve found is that more and more people were looking to us to help finance helping them age in their own homes,” said Gauci. “[More] people were looking at our income advantage product, which is a way to get proceeds from a reverse mortgage over time, so it almost provides an income stream over time.”
Looking ahead, Gauci sees interesting times from an economic perspective, and emphasizes the importance of keeping communication lines open with the bank’s mortgage broker partners.
“We’re strengthening our communication efforts with more training and more tools. So we’ve relaunched our launch pad recently to help our broker partners better communicate with their customer base and provide more of [the education and tools] that people are looking for,” she said.
Another development is the appointment of Pattie Lovett-Reid as HomeEquity Bank’s chief financial commentator, who can provide guidance to keep Canadians informed about homeownership matters.
Watch the full interview here
