Global equity release market set to triple, with Canada in growth spotlight
Why the gap persists
The EPPARG-EY survey found that respondents across all 14 jurisdictions identified limited consumer knowledge and awareness as the most significant barrier to growth, with persistent misconceptions – including the widely held but incorrect belief that the lender takes ownership of the home – continuing to suppress uptake.
Elevated interest rates compared with pre-2022 levels and, in some markets, constrained access to funding were also cited as structural obstacles.
Researchers found that consumers are generally willing to use their home equity in times of financial hardship when faced with costs such as care or nursing, but emotional obstacles along with the costs and complexity of equity release products prevent consumers from using them to fund retirement. That finding, from an FP Canada study of 1,200 Canadian consumers and 500 financial planners, points directly to the advisory opportunity.
The EPPARG-EY survey’s respondents were emphatic about one change that could shift this dynamic: repositioning equity release products as a credible, mainstream retirement planning option through financial advisors, rather than a measure of last resort.
The survey notes that domestic funding is available in the Canadian market, with fewer than five providers active nationally. Financing in Canada comes primarily from banks. The survey projects that most respondents anticipate domestic funding will increase in the years ahead, which, if realised, would support expanded product availability and potentially bring new entrants into the market.
