Canadians aged 55 and over are sitting on a massive $2.5 trillion in home equity, according to a 2024 HomeEquity Bank study. This has led to a surge in the reverse mortgage industry, which allows homeowners to convert their equity into tax-free cash without monthly payments.
Reverse mortgages have become a viable option for many, especially with 71% of Canadians 75 and over still owning their homes. The industry has seen new players emerge since 2018, offering competitive rates and convenient borrowing options.
This growth in reverse mortgages can have a significant impact on Calgary's real estate market. As more homeowners tap into their equity, it could lead to increased spending and investment in the local economy. Calgary buyers, sellers, and investors should be aware of this trend and its potential effects on the market.
Sources: Financial Post