Canada’s total outstanding reverse mortgage credit massively grew by 31.68% year-over-year in November 2018, to reach a record-high $3.48 billion.
This was also 1.85% higher than the month prior, pointing to a trend of an increasing proportion of elderly Canadians borrowing with their equity, according to the Office of the Superintendent of Financial Institutions
The OSFI added that while annual growth in December 2018 was around 31% lower compared to the same month in 2017, the unprecedented heights of the outstanding total still indicated that the trend is not stopping any time soon.
Read more: Canadian seniors are borrowing more and more
However, a significant number of Canadian seniors have recently voiced worries about their future prospects, considering the rate they are going through their home equity.
According to the latest MNP Consumer Debt Index conducted by Ipsos, 41% of Canadians said that they are concerned about their existing accountabilities, and a larger 43% admitted that they regret the amount of debt that they have taken on in their lives.
“Seniors are usually on a fixed income, meaning a big loan isn’t likely to be paid quickly. At that age, they also aren’t likely to find new additional income streams either. That adds up to borrowers that will rack up interest for a very long time,” Better Dwelling warned in its analysis of the OSFI data.