The emergence of ‘living legacies’ has dawned. More than ever, the purchase of a first home is becoming out of reach for most Canadians and can necessitate family support. Financial planners and bankers are offering new digital services to help.
Steph Morgan, Managing Director of HomeBridge
“With rising affordability challenges, particularly in housing, many Canadians 55+ are turning to their home equity to create living legacies,” explained Steph Morgan, Managing Director of HomeBridge. “By gifting funds now, they can help loved ones tackle soaring costs and achieve homeownership, while also experiencing the positive impact of their support firsthand.”
“In the past year we have seen a 15.5% increase in new reverse mortgage holders reportedly using funds for gifting purposes,” said Morgan.
Morgan also shared that “over half (56%) of aspiring homeowners feel home ownership is unattainable and almost one third (31%) of first-time homebuyers have received financial help from family members in 2024, [which …] “led to the creation of HomeBridge”, as a tailored solution to support establishing a living legacy, allowing it to be a faster, smoother process that is fully digital.
“Between 2023 and 2026, Canadian baby boomers are expected to pass down one trillion dollars to their GenX and Millennial heirs—the largest generational wealth transfer in the country’s history,” stated Morgan. “… providing an efficient process for parents to gift allows them to more easily support their adult children’s dreams,” added Morgan.
What is HomeBridge? How does it work as a digital service?
“Ultimately, HomeBridge provides a user-friendly, efficient application process and a simple way for parents to leverage their home equity to gift their family funds,” began Morgan.
“For the first time, HomeBridge communicates with both homebuyers and their parents, enabling Canadians to gift more easily by leveraging their home equity,” said Morgan. “… available to answer any questions and assist brokers, realtors, advisors and their clients throughout the process, … HomeBridge is working to change the conversation around reverse mortgages.”
“Our approach to designing this digital product was developed with inclusivity and usability in mind for all age groups, including Baby Boomers,” shared Morgan. “While we didn’t explicitly design the product solely for this demographic, certain features naturally align with their preferences and priorities.”
Morgan addressed the simplified interfaces, clear navigation, readable typography, accessible design and supportive onboarding and guidance tools as main digital features offered. He explained:
- “We focused on creating an intuitive design with straightforward pathways, reducing potential friction for users who may be less familiar with digital platforms.”
- “Text size, contrast, and layouts are optimized for clarity, making it easier for users of all ages to engage with the product.”
- “Step-by-step tutorials and resources are embedded, helping users feel confident and self-sufficient as they explore the platform.”
As well, Morgan explained, “In terms of messaging, we avoided assumptions about technological fluency … appealing to values that resonate across generations. Our aim is to build a product that empowers all users, regardless of age, while avoiding stereotypes or biases.”
How is HomeBridge different that the CHIP reverse mortgage?
“HomeBridge is an innovative solution that leverages the CHIP Reverse Mortgage solution specifically for gifting,” replied Morgan.
“HomeBridge isn’t a competing product; rather, it complements the existing suite of solutions offered by HomeEquity Bank, such as IncomeAdvantage, CHIPMax, and CHIPOpen,” explained Morgan. “Each of these products is designed for a specific use. In this case, gifting – to help our clients build their living legacy and support the upcoming largest generational wealth transfer in Canadian history.”
“It’s not just about accessing equity—it’s about empowering families and enhancing HomeEquity Bank’s commitment to meeting the diverse needs of our clients,” remarked Morgan.
Morgan surmised, “By offering a simple online application and expert guidance every step of the way, HomeBridge is transforming the way Canadians approach reverse mortgages, enabling them to gift funds when they’re needed most—all without compromising their financial security.”
For over 30 years, tens of thousands of Canadians have used the CHIP Reverse Mortgage by HomeEquity bank to access up to 55% of the value of their primary residence. Factors used to determine the amount one can access include age property location, home type and appraised home value.
On a broader scale, the housing crisis is reshaping perspectives on wealth and inequality. A staggering 78% of Canadians believe the inability to own a home is widening the wealth gap, while 82% say the lack of affordable housing is eroding the middle class.
With the average Canadian life expectancy at 81.6 years, many beneficiaries receive their inheritance too late to use the funds for key life milestones, such as buying a first home or starting a family. In response, more Canadians are choosing to create a living legacy—gifting money to their children and grandchildren during their lifetime.
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