Canadian older home owners can look forward to a measure of relief for their equity in the near future, according to data from the Office of the Superintendent of Financial Institutions.
Canada’s reverse mortgage debt levels have been moving towards slower growth compared to the peaks achieved earlier this year. The economy’s reverse mortgage load grew by 42.32% in August, which was markedly lower than the peak growth level of 46.32% back in February 2018.
“This is the fourth consecutive month of deceleration, and the sixth month in a downtrend. The growth rate is still huge, but it is coming down,” Better Dwelling noted in its analysis of the numbers.
All in all, a promising trend, despite reverse mortgage debt levels reaching a new high of $3.03 billion as of August.
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Baby boomers, in particular, will benefit should the slowdown continue.
“They’re cashing out of homes that, over the years, built tremendous equity for them,” CENTURY 21 Canada executive vice-president Brian Rushton said.
“[Boomers] in their mid- to late-60s are living longer and may want to enjoy some sun in Florida during the winter, so how do they accommodate that with their home? Neighbourhoods also change and might no longer be the places they raised their kids in, so they may want to move.”