HomeEquity Bank Completes 2020 Reverse Mortgage Loan Sale Program, with $100 Million Sold to Concentra Bank
- Program highlights HomeEquity Bank’s ability to find attractive liquidity sources to support growth
TORONTO, Nov. 12, 2020 /CNW/ – HomeEquity Bank today announced that it has sold about $100 million of reverse mortgages to Concentra Bank. This is only the second time that HomeEquity Bank has completed its annual program for sale of reverse mortgages to another financial institution, highlighting the company’s consistent leadership in Canada’s reverse mortgage sector.
“The success of this program speaks to our ability to find attractive sources of liquidity and profitability to support our ongoing growth, even in times of significant uncertainty and market dislocation like we’ve seen throughout 2020,” said HomeEquity Bank EVP and Chief Financial Officer Atul Chandra. “We continue to believe there is room to build a new market for originating and selling reverse mortgages in Canada and today’s announcement is another important step forward in that direction.”
HomeEquity Bank plans to explore similar transactions with other potential investors in the future. Demand for reverse mortgages has remained robust throughout the COVID-19 pandemic, supported by favourable demographic fundamentals and a consistently strong desire by the vast majority of older Canadians to age at home.
About HomeEquity Bank
HomeEquity Bank is a Schedule 1 Canadian Bank offering the CHIP Reverse Mortgage and CHIP Open solutions. The company was founded more than 30 years ago as an annuity-based solution addressing the financial needs of Canadians who wanted to access the equity of their top asset – their home. The Bank is committed to empowering Canadians age 55 plus to live the retirement they deserve, in the home they love. HomeEquity Bank is a portfolio company of Birch Hill Equity Partners Management Inc., a mid-market private equity firm based in Toronto with more than $3 billion in capital under management. For more information, visit www.chip.ca.
For further information: Morgan McLellan, Provident Communications, email: morgan@providentcomms.com or cell: 647-802-4825
