CHIP vs Equitable Bank Reverse Mortgage in Ontario: 2026 Comparison

If you're considering a reverse mortgage in Ontario, you'll encounter two major lenders: HomeEquity Bank, which offers the CHIP Reverse Mortgage, and Equitable Bank, which launched its own reverse mortgage product in recent years. As of 2026, newer players like Bloom Financial and Home Trust are also in the market.

This guide compares the two main options side by side to help Ontario homeowners make an informed decision.

Quick Comparison: CHIP vs Equitable Bank

Feature	HomeEquity Bank (CHIP)	Equitable Bank
Founded in Canada	1986	2022 (reverse mortgage)
Fixed 5-year rate (2025)	7.24% (7.68% APR)	6.54% (6.59% APR)
Variable rate option	Yes	Yes (Prime + 2.60%)
Setup fee	$1,795	$995
Maximum LTV	55%	59%
Conditional approval time	Not advertised	As little as 1 business day
Available in Ontario	Yes	Yes
Prepayment penalty	Varies	Up to 5 months' interest (Yrs 1–3)

Rates as of November 30, 2025. Rates change — verify current rates with each lender.

HomeEquity Bank: The CHIP Reverse Mortgage

HomeEquity Bank is the original and most established reverse mortgage lender in Canada. The CHIP (Canadian Home Income Plan) product has been available since 1986, giving it decades of experience and brand recognition.

CHIP Strengths

• Brand trust: Most Ontario seniors and their families are familiar with CHIP, which can make the process feel more comfortable
• Maximum flexibility: CHIP allows access to the lender's maximum approved amount (typically among the highest in Canada for most property types)
• Established broker network: A very large network of licensed mortgage brokers across Ontario can help arrange CHIP mortgages
• Multiple product options: CHIP Income Advantage (regular scheduled payments), CHIP Max (lump sum), and CHIP Open (flexible access)

CHIP Considerations

• Higher rates: As of late 2025, CHIP fixed rates start at 7.24% — notably higher than Equitable Bank's 6.54%
• Higher setup fee: $1,795 vs Equitable Bank's $995 — a difference of $800 that comes out of your proceeds
• Less competitive for urban Ontario: Equitable Bank's higher maximum LTV of 59% may benefit homeowners in Toronto, Ottawa, and other major markets

Equitable Bank: The Challenger

Equitable Bank entered the reverse mortgage market more recently and has gained market share by offering lower rates and fees.

Equitable Bank Strengths

• Lower interest rates: 6.54% fixed 5-year rate is meaningfully lower than CHIP's 7.24% — on a $300,000 loan, that's approximately $2,100/year in interest savings
• Lower setup fee: $995 vs CHIP's $1,795
• Higher maximum LTV: Up to 59% in major Ontario urban centres — allowing you to access more of your home's value
• Fast approval: Conditional approval in as little as 1 business day
• Variable rate option: Available for those who believe rates will fall

Equitable Bank Considerations

• Newer product: Less brand recognition, though Equitable Bank itself has been a federally regulated bank since 1970
• Property location: The higher 59% LTV is primarily available in major urban centres in Ontario — rural properties may qualify for less
• Prepayment penalty: Up to 5 months' interest if you repay within the first 3 years

Which Lender Should You Choose?

The best lender depends on your specific situation:

Choose HomeEquity Bank (CHIP) if:

• You value brand recognition and the comfort of the most established name in Canadian reverse mortgages
• You are in a smaller Ontario city or rural area where Equitable Bank's LTV advantage may not apply
• Your broker recommends CHIP based on your specific property and financial profile

Choose Equitable Bank if:

• You want the lowest available interest rate (currently 6.54% vs 7.24%)
• You are in a major Ontario urban centre and want access to the higher 59% LTV
• You want a faster approval process
• You want to minimize fees (savings of $800 in setup costs)

Pro tip: Work with a licensed mortgage broker rather than going directly to a single lender. Brokers can shop both CHIP and Equitable Bank (and Bloom) on your behalf, presenting you with a true comparison — at no additional cost to you.

What About Bloom Financial and Home Trust?

Bloom Financial launched in 2021 and is available in Ontario, BC, and Alberta. Bloom offers competitive rates and a modern application process, but has a smaller track record. Worth including in your comparison.

Home Trust launched their EquityAccess reverse mortgage product in October 2025, available through mortgage brokers in Ontario and BC. It's too new to have significant review data, but increased competition generally benefits consumers with better rates and terms.

The Real Cost of Rate Differences Over Time

Let's illustrate what the rate difference actually means over 10 years on a $300,000 reverse mortgage:

• CHIP at 7.24%: Loan grows to approximately $601,000 over 10 years
• Equitable Bank at 6.54%: Loan grows to approximately $568,000 over 10 years

Difference: ~$33,000 left to your estate.

This is a meaningful difference for homeowners who prioritize preserving estate value — and further supports getting quotes from multiple lenders before deciding.

Key Takeaways

• Equitable Bank's fixed 5-year rate (6.54%) is meaningfully lower than HomeEquity Bank's CHIP rate (7.24%) as of late 2025.
• Equitable Bank offers a higher maximum loan-to-value of 59% in major Ontario urban centres, compared to CHIP's 55%.
• CHIP's setup fee is $1,795 versus Equitable Bank's $995 — an $800 difference that comes directly out of your proceeds.
• Both lenders require all homeowners on title to be at least 55 years old, and both operate under Canada's no-negative-equity guarantee.
• Over 10 years on a $300,000 loan, the rate gap between CHIP and Equitable Bank can mean roughly $33,000 more left to your estate with the lower-rate option.
• Bloom Financial and Home Trust have also entered the Ontario reverse mortgage market, giving homeowners more lenders to compare through a broker like Rick Sekhon.

Frequently Asked Questions

Is CHIP or Equitable Bank better for Ontario homeowners?

Neither is universally better — it depends on your property location, priorities, and financial profile. Equitable Bank generally offers lower rates and fees plus a higher maximum LTV in major urban centres, while CHIP offers decades of brand recognition and a broader broker network, which can matter in smaller or rural Ontario markets.

Can I switch lenders after taking a reverse mortgage?

Yes, but it typically involves refinancing, which means repaying the original reverse mortgage balance (potentially including a prepayment penalty) and starting a new loan with the second lender. Most homeowners find it more cost-effective to compare lenders thoroughly before choosing rather than switching later.

Do CHIP and Equitable Bank have the same eligibility requirements?

Both require that all homeowners on title be at least 55 years old and that the property be your primary residence. Specific requirements around minimum home value, property type, and location can vary slightly between lenders, so it's worth confirming details for your specific property.

Will working with a broker cost me more than going directly to CHIP or Equitable Bank?

No. Licensed mortgage brokers like Rick Sekhon are typically compensated by the lender, not the borrower, so there is generally no additional cost to you for comparing multiple lenders through a broker versus applying directly.

How often do reverse mortgage rates change in Ontario?

Rates can change periodically based on bond yields and lender policy, similar to conventional mortgage rates. The rates cited in this comparison reflect late 2025 figures, so it's important to confirm current rates with each lender or your broker before making a final decision.

Get a free consultation to compare your options →

Also read:

• What is a reverse mortgage and who qualifies in Ontario?
• How reverse mortgages can improve your retirement cash flow
• Using a reverse mortgage for debt relief in Ontario

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