Canadian financial software firm launches new reverse mortgage product

Portfolio+ is responding to the growing demand for the products

Canadian financial software firm launches new reverse mortgage product
Steve Randall

A Toronto-based provider of financial services software and solutions has added a new reverse mortgage solution to its suite of lending products.

Portfolio+ says that the demand for reverse mortgage products is growing in Canada as an increasing number of seniors looking to leverage home equity as a retirement funding source and that its solution enables financial institutions to add this retirement planning option to their portfolio of services.

The solution allows for customization and personalization of the reverse mortgage offer including terms and rates, along with seamless end-to-end processing from origination to funding.

"Portfolio+ is proud to introduce a product that not only addresses the pressing challenges in today's market, but also provides financial institutions with a tool to drive innovation and meet the evolving needs of their clients," said Dianne Cupples, CEO of Portfolio+ Inc.

The reverse mortgage market in Canada has room for strong growth but it currently lagging peers in other developed countries such as Australia and the United Kingdom, with the market worth just $6 billion as of Q2 2022 according to a Morningstar report.

HomeEquity Bank’s CHIP Reverse Mortgage and Equitable Bank’s Reverse Mortgage Flex are the two largest providers of the solutions currently.

In a recent report from Deloitte, better explaining to Canadians benefits of reverse mortgages was one of the recommendations to help improve financial security among next-generation retirees amid a looming retirement crisis.