Equitable Bank Reverse Mortgage Review: Rates and Features (2026)

Is Equitable Bank's reverse mortgage really cheaper than CHIP — and is a newer product worth the switch? Since entering the Canadian reverse mortgage market in 2022, Equitable Bank has disrupted a space that HomeEquity Bank dominated for over 35 years. With lower rates, lower fees, and a higher maximum loan-to-value ratio, Equitable Bank has quickly become the preferred lender for many Ontario seniors. This comprehensive 2026 review covers everything you need to know.

Equitable Bank is not a startup — it is a Schedule I federally regulated bank that has operated in Canada since 1970. It holds over $40 billion in assets under management and is regulated by OSFI. The reverse mortgage is one of many lending products in its portfolio.

Equitable Bank Reverse Mortgage: Current Rates (2026)

As of early 2026, Equitable Bank offers the following reverse mortgage rates:

Rate Type	Rate	APR	Term
Fixed rate	6.54%	6.59%	5-year term
Variable rate	Prime + 2.60%	Varies	Open

For comparison:

Lender	Fixed 5-Year Rate	APR	Setup Fee
Equitable Bank	6.54%	6.59%	$995
HomeEquity Bank (CHIP)	7.24%	7.68%	$1,795
Bloom Financial	~6.75%	Varies	~$1,495
Home Trust	Competitive (contact broker)	Varies	Varies

Rates as of March 2026. Rates change frequently — contact Rick Sekhon for the most current rates available to you.

The rate advantage is significant. On a $250,000 reverse mortgage held for 10 years:

Lender	Rate	Balance After 10 Years	Interest Cost
Equitable Bank	6.54%	~$473,000	~$223,000
HomeEquity Bank (CHIP)	7.24%	~$503,000	~$253,000
Difference	0.70%	~$30,000	~$30,000 saved

That $30,000 difference represents money that stays in your estate or remains available as home equity.

Key Features of the Equitable Bank Reverse Mortgage

Higher Loan-to-Value Ratio

Equitable Bank offers up to 59% LTV in major urban centres across Ontario — compared to HomeEquity Bank's typical maximum of 55%. This means you can access more of your home's value.

For a home appraised at $700,000:

Lender	Maximum LTV	Maximum Loan Amount
Equitable Bank	59%	$413,000
HomeEquity Bank	55%	$385,000
Difference		$28,000 more available

The higher LTV is particularly valuable for Ontario homeowners in Toronto, Ottawa, Hamilton, London, and other major markets where Equitable Bank's property valuations are strongest.

Important caveat: The 59% maximum applies primarily to urban properties. Rural Ontario properties may qualify for a lower LTV depending on location and marketability. Rick Sekhon can provide your specific maximum based on your property address.

Lower Setup Fee

Equitable Bank charges a $995 setup fee — $800 less than CHIP's $1,795. This fee covers the lender's administration costs and is typically deducted from your reverse mortgage proceeds at closing.

Fast Conditional Approval

Equitable Bank advertises conditional approval in as little as one business day — significantly faster than the industry average. Full funding typically takes 3-4 weeks from application to closing, including the mandatory independent legal advice requirement.

Payout Options

Equitable Bank offers:

• Lump sum — receive the full approved amount at closing
• Initial advance plus future draws — take what you need now and access additional funds later (within your approved limit)
• Scheduled advances — regular payments deposited to your account

This flexibility mirrors what CHIP offers and allows Ontario seniors to tailor the product to their specific cash flow needs.

Prepayment Terms

Prepayment Period	Penalty
Years 1-3	Up to 5 months' interest on the amount prepaid
Years 4-5	Reduced penalty (varies)
At renewal or sale	No penalty
At death (estate settlement)	No penalty

If you sell your home or pass away, there is no prepayment penalty. The penalty applies only to voluntary early repayment during the term — a scenario that affects a minority of borrowers.

Equitable Bank vs HomeEquity Bank (CHIP): Detailed Comparison

Feature	Equitable Bank	HomeEquity Bank (CHIP)
Years in reverse mortgage market	Since 2022	Since 1986
Fixed 5-year rate (2026)	6.54%	7.24%
Variable rate	Prime + 2.60%	Available (varies)
Maximum LTV	59% (urban)	55%
Setup fee	$995	$1,795
Conditional approval speed	~1 business day	Not advertised
Minimum age	55	55
Joint borrowers	Yes	Yes
Lump sum option	Yes	Yes (CHIP Max)
Scheduled payment option	Yes	Yes (CHIP Income Advantage)
Open/flexible access	Yes	Yes (CHIP Open)
Property types accepted	Most residential	Most residential
Geographic coverage (Ontario)	Major urban + suburban	Broad — including rural
Prepayment penalty (Yrs 1-3)	Up to 5 months' interest	Varies by product
Regulated by	OSFI	OSFI
Available through brokers	Yes	Yes
Independent legal advice required	Yes	Yes

Where CHIP Still Wins

Despite Equitable Bank's rate and fee advantages, HomeEquity Bank maintains strengths in several areas:

• Brand recognition: CHIP has 35+ years of market presence. Many Ontario seniors and their families are already familiar with the brand, which can ease the decision-making process.
• Rural and small-town coverage: HomeEquity Bank generally accepts a broader range of property locations across Ontario, including smaller towns and rural properties where Equitable Bank's LTV may be lower.
• Product variety: CHIP offers clearly branded product tiers (CHIP Max, CHIP Income Advantage, CHIP Open) that make it easy to understand what you are getting.
• Track record: With decades of data, HomeEquity Bank has a proven track record of honoring its no-negative-equity guarantee and managing the product through multiple market cycles.

Where Equitable Bank Wins

• Lower cost: 0.70% lower rate + $800 less in setup fees = meaningful savings
• Higher LTV: Access more of your equity in urban Ontario
• Speed: Faster conditional approval process
• Competitive pressure: Equitable Bank's entry into the market has forced all lenders to compete harder, benefiting consumers

The Application Process

Applying for an Equitable Bank reverse mortgage through a broker like Rick Sekhon follows these steps:

1. Initial consultation — Rick reviews your age, property location, existing mortgage balance (if any), and how much you need. This call typically takes 15-30 minutes.

2. Pre-qualification — Based on your information, Rick can provide an estimate of how much you qualify for and at what rate.

3. Formal application — You complete the application with Rick's assistance. He submits it to Equitable Bank (and often to other lenders simultaneously for comparison).

4. Conditional approval — Equitable Bank reviews the application and issues conditional approval, often within one business day.

5. Appraisal — A licensed appraiser visits your property to confirm its market value. The appraisal fee (typically $300-$500) is usually deducted from your proceeds.

6. Independent legal advice — As required by FSRAO and federal regulations, you must receive independent legal advice from a lawyer of your choice. This ensures you understand the terms before signing.

7. Closing and funding — Your lawyer registers the mortgage on title, and funds are released to you — typically within 5-10 business days of closing.

According to the Financial Services Regulatory Authority of Ontario (FSRAO), all reverse mortgage borrowers in Ontario must receive independent legal advice before the mortgage can be registered, ensuring consumer protection.

Who Should Choose Equitable Bank?

Equitable Bank is the better choice for Ontario homeowners who:

• ✓ Live in a major urban centre (Toronto, Ottawa, Hamilton, Mississauga, London, Kitchener-Waterloo)
• ✓ Want the lowest available interest rate
• ✓ Want to minimize upfront fees
• ✓ Need to access the maximum amount of their home equity
• ✓ Value a faster approval timeline
• ✓ Are comfortable with a newer-to-market reverse mortgage product from an established bank

HomeEquity Bank (CHIP) may be better if you:

• ✓ Live in a smaller Ontario town or rural area
• ✓ Value the comfort of the most established brand name in Canadian reverse mortgages
• ✓ Want a specific CHIP product (such as CHIP Income Advantage for regular payments)
• ✓ Have a property type that Equitable Bank does not accept at its highest LTV

What Customers Say

While individual reviews vary, the most common feedback about Equitable Bank's reverse mortgage product includes:

• Positive: Lower rates are the most frequently cited advantage. Many borrowers report saving thousands compared to CHIP quotes.
• Positive: The application process through brokers is reported as straightforward and professional.
• Neutral: Some borrowers note that Equitable Bank's brand is less familiar than CHIP, causing initial hesitation — though this fades once they understand Equitable Bank's established banking history.
• Consideration: A small number of borrowers with rural Ontario properties report qualifying for a lower LTV than expected. Working with an experienced broker like Rick Sekhon helps set accurate expectations upfront.

Rate History and Outlook

Equitable Bank's reverse mortgage rates have generally tracked below CHIP since entering the market:

Period	Equitable Bank Fixed Rate	CHIP Fixed Rate	Spread
Late 2022 (launch)	~5.59%	~6.59%	~1.00%
Mid 2023	~6.30%	~7.10%	~0.80%
Late 2024	~6.74%	~7.44%	~0.70%
Early 2026	6.54%	7.24%	0.70%

The Bank of Canada's rate easing cycle that began in mid-2024 has brought some relief, and the spread between the two lenders has remained relatively stable. Both lenders are federally regulated and both products carry the no-negative-equity guarantee — meaning you (or your estate) will never owe more than the fair market value of your home.

Future rate movements depend on the Bank of Canada's monetary policy, bond yields, and competitive dynamics in the reverse mortgage market. The entry of Bloom Financial and Home Trust into the market has added further competitive pressure, which is likely to keep rates from rising significantly even if the broader rate environment shifts.

The Bottom Line

Equitable Bank has earned its position as the value leader in the Canadian reverse mortgage market. For most Ontario homeowners in urban and suburban areas, it offers the best combination of rates, fees, and borrowing capacity available in 2026. The product is backed by a 50+ year-old federally regulated bank and carries the same consumer protections as CHIP.

That said, the best lender for you depends on your specific property, location, and needs. Rick Sekhon works with all four major reverse mortgage lenders — HomeEquity Bank, Equitable Bank, Bloom Financial, and Home Trust — and can present side-by-side comparisons for your exact situation at no cost to you.

Frequently Asked Questions

Is Equitable Bank a safe lender for a reverse mortgage? Yes. Equitable Bank is a Schedule I federally regulated Canadian bank, supervised by OSFI. It has operated since 1970 and holds over $40 billion in assets. Your reverse mortgage is a registered lien on your property — the lender's financial stability does not affect your ownership or loan terms. The FCAC oversees consumer protection for all federally regulated lenders.

Can I switch from CHIP to Equitable Bank? Yes. If you currently have a CHIP reverse mortgage, you can refinance to Equitable Bank at renewal or by paying any applicable prepayment penalty. Rick Sekhon can calculate whether the rate savings justify the switch based on your remaining term and balance.

Does Equitable Bank offer the same no-negative-equity guarantee as CHIP? Yes. Equitable Bank's reverse mortgage includes a guarantee that you (or your estate) will never owe more than the fair market value of your home at the time of sale, provided you have met the terms of the mortgage agreement (maintained the property, paid property taxes, and kept insurance current).

What is the minimum property value Equitable Bank requires? Equitable Bank generally requires a minimum property value of approximately $200,000-$250,000, though this can vary by location. Properties in major Ontario urban centres typically qualify more easily. Rick Sekhon can confirm eligibility for your specific property.

Can I get a reverse mortgage from Equitable Bank if I have an existing mortgage? Yes. The reverse mortgage pays off your existing mortgage first, and you receive the remaining approved amount. For example, if you qualify for $300,000 and have a $75,000 existing mortgage, you would receive approximately $225,000 (minus closing costs). This also eliminates your monthly mortgage payment — a significant cash flow benefit.

How do I apply for an Equitable Bank reverse mortgage in Ontario? The easiest path is through a licensed mortgage broker. Contact Rick Sekhon for a free consultation — he will gather your information, submit applications to Equitable Bank and other lenders, and present you with the best available options. There is no cost to you for the broker's service; the lender pays the broker's fee.

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Speak to a licensed mortgage professional. Independent legal advice is required before closing a reverse mortgage in Ontario.

Get your free Ontario Reverse Mortgage Guide →

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This content is for illustrative purposes only. Rates may vary. Call Rick Sekhon for the best rates and more information.