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The Ontario Teachers’ Pension Plan Board has signed a deal to buy the parent company of reverse mortgage lender HomeEquity Bank.

Financial terms of the deal for HomeQ Corp. were not immediately available.

Ontario Teachers’ is buying the company from private equity firm Birch Hill Equity Partners Management Inc. and the other minority shareholders.

HomeEquity Bank offers reverse mortgages which allow homeowners to access the equity in their homes.

Karen Frank, senior managing director of equities at Ontario Teachers’, said HomeEquity Bank has a high-quality management team, a solid value proposition for consumers and room to grow their business given Canada’s aging population.

The deal is subject to regulatory approvals which are expected in the first half of next year.