25 June 2019

In exchange for it, you receive a slightly higher interest rate than in case of a usual HELOC.

In April, the outstanding balance for this type of credit reached $3.66 billion, marking a 1.24% annual increase. It’s also 28.15% higher than in April 2018. Such an increase came amid other credit sectors showing much lower results.

The balance of reverse mortgage debt reported a new record high level, while the growth still was slower. Although the balance isn’t so big, it’s important to understand that this product was created for higher than typical growth. As seniors often depend on fixed incomes, and they don’t have to make payments, the paying off issue could by tricky. Canada’s population ages, so we’ll see more seniors with less cash but expensive homes moving towards this sector.