August 21, 2019

HomEquity Bank Extends Reverse Mortgage Lending

Canada NewsWire

TORONTO, June 8, 2011

Canadian homeowners 55 and over can now qualify

TORONTO, June 8, 2011 /CNW/ – HomEquity Bank, a subsidiary of HOMEQ Corporation, announced today that its flagship financial solution, CHIP Home Income Plan, has now been made available to Canadian homeowners as young as 55.

The lowering of the eligibility age from 60 to 55 comes primarily in response to a significant demand by couples where one spouse is over 60 while the other may be a few years younger.  By lowering the eligibility age to 55, HomEquity Bank hopes to help Canadian seniors better coordinate their retirement plans by making it possible to access equity in their homes to enjoy retirement on their terms.

“We are continually responding to a very broad market demand for reverse mortgages driven by the demographic wave and other macro economic factors affecting retirement trends in Canada,” said Greg Bandler, Senior Vice President, HomEquity Bank. “The change from 60 to 55 as the minimum age of eligibility for a CHIP Home Income Plan does not constitute a major shift in our lending focus. The majority of our new clients will continue to be homeowners in their late 60s and early 70s.”

Now in its 25th year of business operations, HomEquity Bank is the only national provider of reverse mortgages in Canada. Reverse mortgages are offered to Canadian homeowners and have no income, credit or health qualifications. Unlike traditional loans, borrowers don’t have to service the interest or repay the principal for as long as they own their home and are living in it.

About HomEquity Bank

HomEquity Bank is a Schedule I Canadian Bank and a wholly-owned subsidiary of HOMEQ Corporation (HOMEQ). HOMEQ’s shares trade on the Toronto Stock Exchange under the symbol HEQ.

HOMEQ’s wholly owned subsidiary HomEquity Bank is the only national provider of reverse mortgages to homeowners aged 55 and over, Canada’s fastest growing demographic segment. HomEquity Bank originates and administers Canada’s largest portfolio of reverse mortgages under the CHIP Home Income Plan brand. As of March 31, 2011, the mortgage portfolio comprised approximately 8,000 reverse mortgages with an accrued value of $1.1 billion, secured by residential properties across Canada worth approximately $2.8 billion. HomEquity Bank has been the main underwriter of reverse mortgages in Canada since its predecessor, Canadian Home Income Plan, pioneered the concept in 1986.

For more information about HomEquity Bank, please visit www.homequitybank.ca. Additional information on HOMEQ Corporation, including annual and quarterly reports can be viewed at www.homeq.ca.

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