Canada is becoming a hot spot for reverse mortgages as more of the country's elderly population leans towards them.
"We’ve only been in this market for 18 months, but applications are jumping," and have tripled over the past year, Andrew Moor, chief executive officer at Equitable Group Inc., said in an interview, according to Bloomberg.
"The company, which operates Equitable Bank, sees the reverse mortgage sector expanding by about 25% a year. 'Canadians are getting older and there is an opportunity there.'"
The report also states that outstanding balances on reverse mortgages have more than doubles in less than four years to $2.37 billion, but still represents less than one percent of residential mortgages issued by chartered banks.
"The fact that these niche products are growing so quickly offers a glimpse into how some seniors are becoming part of Canada’s new debt reality," according to Bloomberg.
"After a decades-long housing boom, the nation has the highest household debt load in the Group of Seven, one reason Bank of Canada Governor Stephen Poloz may be reluctant to join the global monetary-policy easing trend."
To learn more about the booming reverse mortgage business ion Canada, click on the image above.