Canadians prioritizing home renovations over savings

Equitable Bank, a subsidiary of Toronto-based Equitable Group Inc. has launched Path Home Plan, a reverse mortgage that gives Canadian homeowners aged 55 and over a way to tap into the equity in their homes.

The reverse mortgage, also known as an equity release solution, will initially be available to homeowners in Alberta, British Columbia and Ontario through mortgage brokers.

“For a long time, Canadians have had limited choices to access the equity in their homes,” says Kim Kukulowicz, vice president of residential sales and partner relations, Equitable Bank, in a news release. “Now, they can sit down with an experienced and well-established mortgage broker network and get the right guidance and personalized options that meet their needs.”

The new product is intended to help diversify Equitable Bank’s business, while helping more aging Canadian homeowners stay in their homes.

“We have been studying the equity release market with interest for several years,” adds Andrew Moor, president and CEO of Equitable Bank. “With the combination of favourable demographics, increased home equity values and less support from traditional defined-benefit pension plans, Path Home Plan will provide a valuable option to Canadian seniors, generate attractive returns for our shareholders, and further strengthen our business.”