Best Reverse Mortgage Lender 2026: CHIP vs. Equitable vs. Bloom vs. Home Trust

"Which lender should I choose for my reverse mortgage? What's the difference between CHIP, Equitable, Bloom, and Home Trust?" Four major lenders compete for your reverse mortgage business in Ontario, each with distinct rates, loan limits, and service models. Choosing the right lender can save you thousands in interest and provide better ongoing service. This detailed comparison helps you evaluate which lender aligns with your goals and financial situation.

This article is for educational purposes only and does not constitute financial advice.

The Four Major Lenders: Head-to-Head

CHIP Reverse Mortgage (HomeEquity Bank)

Overview: The largest and most established reverse mortgage lender in Canada. CHIP has dominated the market for 25+ years and is known for reliability and brand recognition.

Feature	Details
Lender	HomeEquity Bank (federally regulated)
Current Rate	7.25% fixed / 6.75% variable
Max LTV	55% of home value
Age Requirement	55+
Processing Time	4–6 weeks
Minimum Advance	$25,000 (may vary)
Prepayment Penalty	None
Drawdown Options	Lump sum, scheduled draws, line of credit
Ongoing Fees	Minimal ($0–$100/year)

Strengths:

• Brand recognition and established reputation
• Flexible drawdown options (crucial for cost minimization)
• Substantial marketing (easy to find information)
• Standardized underwriting (predictable process)

Weaknesses:

• Rates not always competitive (slightly higher than competitors sometimes)
• Less flexibility in underwriting complex situations
• Customer service can be slow (high volume)

Best for: First-time borrowers who value brand confidence and don't need complex underwriting.

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Equitable Bank

Overview: Canadian-owned bank offering competitive rates and modern underwriting. Increasingly popular alternative to CHIP, with slightly better rates and higher borrowing capacity.

Feature	Details
Lender	Equitable Bank (federally regulated)
Current Rate	7.10% fixed / 6.65% variable
Max LTV	59% of home value
Age Requirement	55+
Processing Time	4–6 weeks
Minimum Advance	$30,000 (may vary)
Prepayment Penalty	None
Drawdown Options	Lump sum, scheduled draws, line of credit
Ongoing Fees	Minimal ($0–$100/year)

Strengths:

• Competitive rates (often 0.10–0.25% lower than CHIP)
• Higher borrowing capacity (59% vs. 55%)
• Modern digital application process
• Customer service responsive and accessible

Weaknesses:

• Less brand recognition than CHIP (newer to reverse mortgages)
• Less marketing presence (requires active searching)
• Slightly less flexible on edge cases

Best for: Borrowers seeking best rates and higher borrowing capacity; those comfortable with slightly newer lender.

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Bloom Financial

Overview: Specialized lender focused on complex situations, flexible underwriting, and personalized service. Smaller but highly regarded for problem-solving.

Feature	Details
Lender	Bloom Financial (alternative lender)
Current Rate	7.35% fixed / 6.85% variable
Max LTV	58% of home value
Age Requirement	55+
Processing Time	5–7 weeks (slightly slower, more thorough)
Minimum Advance	$20,000 (flexible)
Prepayment Penalty	None
Drawdown Options	Lump sum, scheduled draws, line of credit
Ongoing Fees	Minimal ($0–$150/year)

Strengths:

• Most flexible underwriting (accepts complex situations: second mortgages, non-standard properties, recent credit challenges)
• Personalized service (smaller team, more attention)
• Lower minimum ($20,000 vs. $25–30,000 others)
• Willing to work with borrowers other lenders decline
• Strong regional relationships in Ontario

Weaknesses:

• Rates slightly higher (0.25% premium for flexibility)
• Slower processing (5–7 weeks vs. 4–6)
• Smaller lending volume (less scale efficiency)

Best for: Borrowers with complex situations (poor credit, unusual properties, second mortgages, recent life events) who value flexibility over lowest rates.

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Home Trust

Overview: Newest entrant to Canadian reverse mortgages (launched October 2025). Aggressive competitor offering competitive rates and modern technology, but limited track record.

Feature	Details
Lender	Home Trust (federally regulated, new)
Current Rate	7.45% fixed / 6.95% variable
Max LTV	57% of home value
Age Requirement	55+
Processing Time	4–6 weeks
Minimum Advance	$25,000
Prepayment Penalty	None
Drawdown Options	Lump sum, scheduled draws (line of credit TBD)
Ongoing Fees	TBD (likely minimal)

Strengths:

• Aggressive new entrant pricing (competing for market share)
• Modern digital platform
• Ambitious service goals
• May offer promotional rates as they grow

Weaknesses:

• No track record (only ~6 months operational)
• Smaller team (may have growing pains)
• Unknown long-term stability
• Unknown customer service quality long-term

Best for: Borrowers willing to take a chance on newer lender in exchange for potentially better rates and modern technology. Risk-tolerant borrowers only.

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Detailed Comparison: Key Scenarios

Scenario 1: You Need the Lowest Interest Rate

Lender	Fixed Rate	5-Year Interest Cost ($100,000)	Winner
CHIP	7.25%	$42,676	Runner-up
Equitable Bank	7.10%	$41,448	BEST (saves $1,228)
Bloom	7.35%	$43,507	More expensive
Home Trust	7.45%	$44,210	Most expensive

Recommendation: Equitable Bank offers the lowest rates consistently and has proven track record.

Scenario 2: You Need the Highest Borrowing Capacity

Home Value	CHIP (55%)	Equitable (59%)	Bloom (58%)	Home Trust (57%)
$400,000	$220,000	$236,000	$232,000	$228,000
$500,000	$275,000	$295,000	$290,000	$285,000
$600,000	$330,000	$354,000	$348,000	$342,000

Recommendation: Equitable Bank allows you to borrow up to $59,000 more on a $600,000 home compared to CHIP.

Scenario 3: Your Credit Is Damaged or Situation Is Complex

Factor	CHIP	Equitable	Bloom	Home Trust
Accepts recent credit challenges	Limited	Limited	Yes	Unknown
Works with second mortgages	Limited	Limited	Yes	Limited
Flexible on non-standard properties	Limited	Limited	Yes	Unknown
Personalized underwriting	No	No	Yes	No

Recommendation: Bloom Financial if standard lenders decline you or your situation is unusual.

Scenario 4: You Want Modern Technology + Good Rates

Feature	CHIP	Equitable	Bloom	Home Trust
Digital application	Basic	Excellent	Good	Excellent
Online portal	Limited	Full-featured	Limited	Full-featured
Mobile app	No	Yes	No	Under dev
API integrations	No	Planned	No	Planned

Recommendation: Equitable Bank or Home Trust for modern digital experience.

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Which Lender Should You Choose?

Your Situation	Recommended Lender	Why
First-time borrower, standard situation	Equitable Bank	Best rates + proven track record
Want absolute lowest rate	Equitable Bank	Consistently best pricing
Need high borrowing capacity	Equitable Bank	59% max LTV highest in market
Complex underwriting situation	Bloom Financial	Most flexible, accepts edge cases
Recent credit challenges	Bloom Financial	Willing to work with imperfect situations
Want newest technology	Equitable Bank or Home Trust	Modern digital platforms
Risk-tolerant, want potential deals	Home Trust	New entrant, aggressive pricing
Value brand recognition above all	CHIP	Most established, largest

Special Situations: Lender Recommendations

Situation: You Have Second Mortgage Outstanding

• CHIP, Equitable, Home Trust: Typically decline or require complex underwriting
• Bloom: Actively works with second mortgages, flexible on subordination

Recommendation: Start with Bloom Financial.

Situation: Property Is Non-Traditional (Farmland, Cottage, Hobby Property)

• CHIP, Equitable: Require primary residence only
• Bloom: More flexible; may consider alternative properties
• Home Trust: Unclear (too new)

Recommendation: Start with Bloom Financial.

Situation: You Want Structured Drawdown (Not Lump Sum)

• CHIP: Excellent structured drawdown options
• Equitable: Good structured options
• Bloom: Flexible; custom structuring available
• Home Trust: Standard structured drawdown available

Recommendation: Any lender works; prioritize based on rates.

Situation: You Want Line of Credit Structure

• CHIP: Yes, available
• Equitable: Yes, available
• Bloom: Yes, custom options
• Home Trust: Under development (ask)

Recommendation: CHIP, Equitable, or Bloom for line of credit.

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How to Shop: Getting Rate Quotes

Step 1: Contact at least three lenders — rate quotes take 15–30 minutes and are free.

Step 2: Provide:

• Home address
• Estimated home value
• Estimated mortgage balance (if any)
• Your age and all owner ages

Step 3: Ask specifically for:

• Current fixed and variable rates
• Maximum borrowing (55%, 59%, etc.)
• Drawdown options available
• Processing timeline
• Any promotional rates (newer lenders sometimes offer these)

Step 4: Compare:

• Rates (use total interest cost over 5–10 years, not just annual rate)
• Max borrowing capacity
• Service quality and responsiveness
• Ongoing fees

Key Takeaways

• Equitable Bank currently offers the lowest rate (7.10% fixed) and highest borrowing capacity (59% max LTV) among the four major Ontario reverse mortgage lenders.
• CHIP (HomeEquity Bank) is the most established lender with 25+ years in the market, but its rates are not always the most competitive.
• Bloom Financial charges a rate premium (7.35% fixed) in exchange for the most flexible underwriting, accepting second mortgages, non-standard properties, and recent credit challenges.
• Home Trust is the newest entrant (launched October 2025) with aggressive pricing but no long-term track record, making it best suited for risk-tolerant borrowers.
• A rate difference of just 0.15–0.25% between lenders can translate to thousands of dollars in total interest cost over a 5-year period.
• All four lenders share the same core terms: age 55+ eligibility, no prepayment penalties, and minimal ongoing fees.

Frequently Asked Questions

Which reverse mortgage lender has the lowest rate in 2026?

Equitable Bank currently offers the lowest rate at 7.10% fixed (6.65% variable), typically 0.10–0.25% below CHIP. On a $100,000 balance over 5 years, this saves roughly $1,228 in interest compared to CHIP's 7.25% fixed rate.

Which lender lets me borrow the most against my home?

Equitable Bank offers the highest maximum loan-to-value ratio at 59% of appraised home value, compared to 55% at CHIP, 57% at Home Trust, and 58% at Bloom Financial. On a $600,000 home, that's up to $59,000 more available through Equitable than CHIP.

Is it worth shopping around between reverse mortgage lenders?

Yes. Since rates vary by 0.15–0.25% between lenders and borrowing capacity can differ by tens of thousands of dollars, comparing at least two or three lenders before committing can save thousands of dollars in total interest cost over the life of the loan.

What if my credit history or property type is unusual?

Bloom Financial is generally the most flexible lender for complex situations, including second mortgages, non-standard properties like farmland or cottages, and recent credit challenges that other lenders may decline. This flexibility comes with a modest rate premium of about 0.25%.

Is Home Trust a safe choice for a reverse mortgage given it's new?

Home Trust is a federally regulated bank, so deposits and lending practices are subject to the same regulatory oversight as other Canadian banks. However, it has only been offering reverse mortgages since October 2025, so it lacks the multi-year service track record of CHIP, Equitable, and Bloom.

Do all reverse mortgage lenders in Ontario charge prepayment penalties?

No. None of the four major lenders—CHIP, Equitable Bank, Bloom Financial, or Home Trust—currently charge prepayment penalties, meaning you can pay down or pay off your reverse mortgage early without additional cost.

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Speak With Rick Sekhon

Rather than contacting each lender separately, speak with Rick Sekhon, an independent reverse mortgage specialist in Ontario. Rick:

• Represents all four major lenders
• Gets rates instantly without initiating hard credit pulls
• Compares options side-by-side
• Advocates for your best outcome
• No fee to you (compensated by lenders)
• Experienced with complex situations

Contact Rick Sekhon:

• Phone: [Contact details in your consultation]
• Email: Available upon request
• Online: Schedule consultation at [site URL]

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The Bottom Line: Which Lender Wins?

For most borrowers: Equitable Bank

• Best overall rates
• Highest borrowing capacity
• Modern digital experience
• Proven track record
• Good customer service

For complex situations: Bloom Financial

• Most flexible underwriting
• Personalized service
• Accepts situations others decline

For brand assurance: CHIP

• Largest and most established
• Familiar name for confidence
• Solid service (though not always best rates)

For risk-tolerant borrowers: Home Trust

• Newest with aggressive pricing
• Unknown long-term stability

Get quotes from at least two lenders. A difference of 0.15–0.25% interest rate translates to thousands of dollars in total interest cost. Shopping matters.

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

Related Reading

• Reverse Mortgage Interest Rates 2026: Current Rates & How They Compare →
• Reverse Mortgage Costs, Interest & Long-Term Impact →
• How Much Can You Borrow with a Reverse Mortgage? →

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