Media
Milestones
1998
2001
2002
2009
2016
2021
Appointed president
1998
Appointed CEO
2001
Led company through public offering of Home Equity Income Trust
2002
Played a central role in the subsequent creation of HomeEquity Bank
2009
Named a regional finalist for the highly prestigious EY Entrepreneur of the Year
2016
Named a Fellow by CPA Ontario, the highest distinction the accounting profession bestows
2021
A retirement solution like no other
Steven Ranson has spent the past 25 years of his career building HomeEquity Bank; now, in 2022, recognition of its flagship product as a valuable tool for a comprehensive retirement strategy extends well beyond company walls. Financial advisors are now taking advantage of the HomeEquity Bank CHIP Reverse Mortgage to help more clients as they age.
“The thing that attracted me to this business initially, and the thing that is still important today, is that it is a unique product that helps people in a way that no other product does,” Ranson, HomeEquity’s CEO and president, tells Wealth Professional. The Toronto-based company is the leading provider of this product.
“There are a growing number of people who are approaching retirement with probably more debt, or less access [to capital], than they expected. This is a way to help them in a way nothing else can,” he says.
“So my message is: people really need to investigate and understand this product, how it works, and the types of things that it can do for them. Awareness of the bank and perception of the product are probably at an all-time high, and that’s a lot of what’s driving the results: people are just realizing what a great product it is.”
HomeEquity had $1.07 billion in originations in 2021, more than 25 percent greater than 2020, when COVID-19 highlighted that many people want to stay in their homes as long as they can rather than move into group settings; the CHIP Reverse Mortgage offers financial advisors another way to allow their clients to do that.
Ranson became HomeEquity’s president in 1998 and its CEO in 2001. He’s led it through the public offering of Home Equity Income Trust in 2002 and the subsequent creation of HomeEquity Bank in 2009. Under his leadership, the bank has substantially expanded, and was named to the Growth 500’s fastest-growing companies list from 2016 through 2020.
Ranson notes that people can also qualify for a loan, but not use all of it, so they don’t pay interest on what they don’t borrow. Or they can use their home equity to create a monthly income stream to manage their after-tax cashflow without having to liquidate other investments.
All of that makes the CHIP Reverse Mortgage an important planning tool for advisors because it means their clients can maximize their after-tax cash flow and minimize their tax by using their home equity before drawing down their RRSP/RRIFS. That can help them avoid paying higher tax rates or having their Old Age Security clawed back.
While some advisors are already using the product, HomeEquity is growing its business development management team to a dozen by next year to help educate advisors. The product is helpful not only to Canadians 55+ who want to stay in their homes but also to grey divorcees making separation settlements, especially if they’re trying to buy the matrimonial home from the other party.
Ranson notes that even though the bank has steadily grown and broadened the circle to which it offers its unique product, there have been some challenging times – such as during the 2008 financial crisis, when it wasn’t yet a bank.
“When we became a bank, it was just so transformational for the business because, the very first day we were a bank, we suddenly had access to much more stable sources of funding through deposits and also more cost-effective rates, which meant we could lower interest rates to consumers, so that was huge,” he says, noting growth has been reasonably steady since.
Last fall, the Ontario Teachers’ Pension Plan (OTPP) – Canada’s largest single-profession pension plan, with $241 billion in assets – announced it had entered into an agreement to buy HomeEquity Bank from Birch Hill Equity Partners. Ranson notes that OTPP shares the bank’s interest in older Canadians’ long-term financial health, so also wants to grow the business to help more people. They’re awaiting regulatory approval to complete the deal.
So what has Ranson learned over his 25-year tenure at Home Equity Bank?
“It’s probably that you can’t have everything all at once,” he says. “Sometimes you just have to focus on the best opportunities at the time, and it doesn’t necessarily mean it’s the biggest. Sometimes, it’s just the one you can execute because you’ve got the talent and capability.”
Spotlight
“The main thing I always emphasize is it’s a simple product,” he says. “But it has some differences from conventional mortgages. How much we lend people is based on different factors: How old are you? Where do you live? And what is your house worth?
“So the upfront process for qualification is different and, in our case, almost everybody qualifies, which isn’t true for conventional debt. Additionally, you’re never required to make a monthly payment. Finally, you never have to worry about when the loan is due because it’s only due when you decide to sell your house.
“You can stay in your home as long as you want, and you never have to worry how you’re going to repay the loan because it’s the proceeds of the house, when you sell it, that settle the loan.”
HomeEquity Bank is a Schedule 1 Canadian Bank offering a range of reverse-mortgage solutions, including the flagship CHIP Reverse Mortgage™ product. The company was founded more than 30 years ago to address the financial needs of Canadians who wanted to access the equity of their top asset – their home. The Bank is committed to empowering Canadians aged 55 and over to live the retirement they deserve in the home they love.
Company Profile
36
Years since company’s founding
$1 billion
Value of reverse-mortgage originations in 2021
$5 billion
Portfolio valuation landmark surpassed in 2021
28%
Percentage increase from 2020
39%
Percentage growth in three years prior to June 2021
Bio
Spotlight
Milestones
Media
Company Profile
years at HomeEquity Bank
25
Tenure at current position
2017 - Present
Fast Facts
As a community leader and avid cyclist and skier, he has served as Alpine Ontario’s Director and Treasurer and is on the board of the YMCA of Greater Toronto
Co-authored Home Run: The Reverse Mortgage Advantage, aimed at debunking reverse mortgage myths and showcasing the product’s life-changing potential for Canadians 55+
Steven Ranson
CEO and President at HomeEquity Bank
With $1bn in originations, HomeEquity Bank expands CHIP Reverse Mortgage offering in wealth space
Read on
“The thing that attracted me to this business initially, and the thing that is still important today, is that it is a unique product that helps people in a way that no other product does”
Steven Ranson,
HomeEquity Bank
“There are a growing number of people approaching retirement with probably more debt, or less access [to capital], than they expected. This is a way to help them in a way nothing else can”
Steven Ranson,
HomeEquity Bank
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Media
Milestones
2011
2012
2015
2016
2019
2021
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2012
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2015
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2016
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2019
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2021
Fundserv is the indispensable connectivity hub for the Canadian investment industry. Headquartered in Toronto, we electronically connect Manufacturers, Distributors, and Intermediaries, enabling them to buy, sell, and transfer investment funds. With more than 100 employees, Fundserv serves hundreds of members—executing up to 63 million yearly network transactions—and provides online access to more than 70,000 investment fund products.
Established in 1993, Fundserv is a private corporation that is owned by the industry we serve. Our 10 shareholders are a cross-section of Manufacturers, Distributors, and Service Providers who represent our members.
We operate using a cost-recovery model, meaning any unused profit may be rebated back to our members. In addition to our network and applications, we lead and facilitate industry committees and working groups that promote automation initiatives and establish the industry’s electronic standards.
By ensuring every trade is processed timely, accurately, and securely, Fundserv has rightfully earned a reputation for service excellence—a hallmark of more than 25 years in the investment industry.
Company Profile
1983
Years since company’s founding
$1 billion
Value of reverse-mortgage originations in 2021
$5 billion
PROPORTION OF WOMEN AMONG FUNDSERV EMPLOYEES
28%
PROPORTION OF WOMEN IN LEADERSHIP
63,514,128
NUMBER OF ORDERS PROCESSED IN 2019
YEARS AT HOMEEQUITY BANK
25
Fast Facts
As a community leader and avid cyclist and skier, he has served as Alpine Ontario’s Director and Treasurer and is on the board of the YMCA of Greater Toronto
Co-authored Home Run: The Reverse Mortgage Advantage, aimed at debunking reverse mortgage myths and showcasing the product’s life-changing potential for Canadians 55+
Karen Adams
President and CEO at Fundserv
Before becoming CEO of Fundserv, Karen Adams held a variety of leadership roles around the world – and she learned that listening and understanding are key to both providing service and developing talent
Read on
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Share
Media
Milestones
2011
2012
2015
2016
2019
2021
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2012
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2015
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2016
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2019
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2021
Fundserv is the indispensable connectivity hub for the Canadian investment industry. Headquartered in Toronto, we electronically connect Manufacturers, Distributors, and Intermediaries, enabling them to buy, sell, and transfer investment funds. With more than 100 employees, Fundserv serves hundreds of members—executing up to 63 million yearly network transactions—and provides online access to more than 70,000 investment fund products.
Established in 1993, Fundserv is a private corporation that is owned by the industry we serve. Our 10 shareholders are a cross-section of Manufacturers, Distributors, and Service Providers who represent our members.
We operate using a cost-recovery model, meaning any unused profit may be rebated back to our members. In addition to our network and applications, we lead and facilitate industry committees and working groups that promote automation initiatives and establish the industry’s electronic standards.
By ensuring every trade is processed timely, accurately, and securely, Fundserv has rightfully earned a reputation for service excellence—a hallmark of more than 25 years in the investment industry.
Company Profile
1983
Years since company’s founding
$1 billion
Value of reverse-mortgage originations in 2021
$5 billion
PROPORTION OF WOMEN AMONG FUNDSERV EMPLOYEES
28%
PROPORTION OF WOMEN IN LEADERSHIP
63,514,128
NUMBER OF ORDERS PROCESSED IN 2019
YEARS AT HOMEEQUITY BANK
25
Fast Facts
As a community leader and avid cyclist and skier, he has served as Alpine Ontario’s Director and Treasurer and is on the board of the YMCA of Greater Toronto
Co-authored Home Run: The Reverse Mortgage Advantage, aimed at debunking reverse mortgage myths and showcasing the product’s life-changing potential for Canadians 55+
Karen Adams
President and CEO at Fundserv
Before becoming CEO of Fundserv, Karen Adams held a variety of leadership roles around the world – and she learned that listening and understanding are key to both providing service and developing talent
Read on
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