Reverse Mortgages in Canada: Potential for Strong Growth Comes with Unique Risks

Reverse mortgages, which allow homeowners 55 and older to tap the equity in their homes without selling, have gained popularity in Canada in recent years on the back of rising housing prices. This is largely tied to older Canadians' desire to remain in their own homes for as long as possible, with this product allowing them to access the equity in their properties for various purposes. While we expect the reverse mortgage market to continue to grow in Canada, there are also rising risks to consider in such products.