Canadian seniors are borrowing more and more

by Ephraim Vecina on 15 Jan 2019

Equity-rich Canadian seniors are borrowing at an accelerated rate, according to data from the Office of the Superintendent of Financial Institutions.

On a national basis, reverse mortgage debt stood at $3.425 billion outstanding as of October 2018, marking its highest point in 8 years.

The debt load represented a 57.46% annualized pace of growth, which was approximately 274% higher than the median year-over-year pace.

This was also 11.57% higher compared to the month prior, and around 844% greater than the median monthly growth.

Read more: Canadian seniors not keen on moving out – poll

The OSFI noted in its previous analysis that if the trends surrounding senior borrowing rates hold, the market should expect a greater proportion of reverse mortgages over the next few years.

An earlier study by TransUnion found that during Q1 2018, borrowing among Canadians age 73 years and older dramatically increased by 63% annually.

Post a Comment

Most Trending News

How much do real estate agents make in Toronto?
News

Commission isn't everything. You should also take other things into consideration such as the cost of marketing, licensing, renting an office, and splitting commissions with the brokerage.

Read More
Can I use the word 'realtor' in advertising?
News

As a member of CREA, you can use REALTOR® in your advertisements but there are a few basic rules that you should follow in order to use the trademark correctly.

Read More
Personal real estate corporation Ontario
News

A personal real estate corporation (PREC) belongs to an individual agent or a broker. There can be many benefits to starting your own PREC in Ontario.

Read More