Reverse mortgages are growing in Canada, reaching a new record high in 2019.
Mortgage Broker News reported that in July 2019, the reverse mortgage balance across Canada stood at $3.78 billion, up annually by 26.24%.
If you are not already targeting this market, there is a real opportunity. We are delving into how to access it.
Pick Your Platforms
First and foremost, in Canada, only homeowners over the age of 55 years old are eligible for a reverse mortgage, which immediately focuses your target. Advertising reverse mortgage products on a platform like Instagram is likely not the best method of targeting these clients.
Instead, aim for platforms that this demographic gravitates more towards: for example, Facebook (Pew Research found that 65% of those aged 50 – 64 use Facebook and 41% of those 65+), print advertising, mailers, telephone calls, word of mouth marketing (such as through local networking), and more.
According to Search Engine Journal:
- Between 81% to 96% of those over 55 use a mobile phone.
- Fewer watch on-demand/streamed content, and the percent changes with age. 43% of those between ages 55 to 64 stream content, while only 22% of those over the age of 75 do.
- Social media profile use also decreases with age. 58% of those between the ages of 55 to 64 have one, while only 20% of those over the age of 75 do.
Many older clients tend to be loyal, sticking with one brand that is their go-to source.
If your brand has established trust with a client previously, they may be more likely to return.
If you are looking for new clients, focus on why your brand is trustworthy through methods such as positive reviews, case studies, and testimonials.
Refine Your Messaging
Think too about the reasons why a reverse mortgage could benefit a prospect.
For instance, people over the age of 55 might need extra income to pay for children’s schooling or a wedding, to fund their retirement, or to go on the trip of a lifetime they never got to take when they were younger.
Studies show older demographics prefer simpler language with a clear call to action.
By using this language in your marketing and speaking to motivation behind getting a reverse mortgage, you can appeal to the emotions of your prospects.
Think Outside the Market
There could also be opportunity for targeting prospects below the age of 55 — either to flag reverse mortgages as an option for when they come of age, and start establishing trust early, or to market it as an option to help their parents or older relatives.
Harness the Power of Technology
You can also be even more targeted in your reverse mortgages prospect search by using technology. Specifically, an automated valuation model (AVM).
Qualifying for a reverse mortgage involves having a large amount of home equity available. Whether a prospect comes to you, or you source them out, you will need to be able to quickly identify how much equity the client can access. That is where an AVM comes in.
With AVM technology, you can generate a property value estimate almost instantly online. While not the same as full-scale property appraisal, this can still give you enough information to validate whether the deal should go forward in the case where a reverse mortgage client comes to you. And for finding reverse mortgage prospects, it is particularly useful.
You can use your AVM to estimate value on any residential property — all you need is the property’s address. You can also use customized bulk data solutions to run large-scale searches.
When paired with a Purview report, an AVM can also tell you property ownership details, the number of parties on title, flag any liens or other encumbrances, and more. You can use this data to verify the suitability of a prospect for a reverse mortgage or to target your reverse mortgage marketing.
Better reverse mortgage targeting starts with your property data. Learn more about Purview’s reverse mortgage property data solutions today. Call 1-855-787-8439 or visit www.purview.ca.
Purview is just one of Teranet’s Financial Services Solutions; stay tuned for our upcoming portfolio unveiling!