Home Trust Enters Canadian Reverse Mortgage Market:
What It Means for Homeowners
Home Trust has officially entered the Canadian reverse mortgage market with its new product, EquityAccess. This move positions Home Trust as a new competitor in a market dominated by established players like HomeEquity Bank and Equitable Bank. EquityAccess is designed for Canadian homeowners aged 55 and older, allowing them to unlock their home equity while remaining in their homes.
Benefits for Homeowners
The EquityAccess product offers several benefits, including access to up to 59% of a home’s appraised value, tax-free lump-sum or scheduled advances, and no monthly payments required. Additionally, the product features a no-negative-equity guarantee, ensuring borrowers never owe more than their home’s fair market value. These features make it an attractive option for homeowners looking to tap into their home equity.
Increased Options for Homeowners
Home Trust’s entry into the reverse mortgage market provides more options for Canadian homeowners. With EquityAccess available exclusively through mortgage brokers, homeowners can work with brokers to find the best solution for their needs. This increased competition could lead to more competitive rates and terms, ultimately benefiting homeowners. Home Trust plans to roll out EquityAccess nationally, starting with Ontario, followed by British Columbia and Alberta.
What to Expect Next
As Home Trust continues to educate brokers and borrowers about the benefits of reverse mortgages, we can expect to see increased awareness and adoption of this product. With the Canadian population aging, the demand for reverse mortgages is likely to grow. Home Trust’s entry into the market may push existing lenders to innovate and improve their offerings, ultimately benefiting Canadian homeowners ¹.
source : https://www.canadianmortgagetrends.com/
