reverse mortgage
CHIP vs Equitable Bank Flex: Reverse Mortgages Compared
Published July 2, 2026 · By YYZ Mortgage
Two banks lead Canada’s reverse mortgage market. One is HomeEquity Bank. Its CHIP brand more or less started this kind of loan here. The other is Equitable Bank. It is the challenger. Its Flex loans have pushed rates and limits in your favour.
Are you 55 or older and weighing the two? This guide keeps it plain. We cover the products, the rates with APRs, the fees, the loan limits, and where each bank lends. We are a broker in the Dominion Lending Centres network. We can place you with either bank. So we have no side to push. We compare both for you. The best fit depends on your needs, not on our shelf.
One ground rule before the numbers. Reverse mortgage rates change often. Each figure below has its as-of date. Please confirm current rates before you decide. Our rates page or a quick call gets you today’s sheets.
The Two Lenders at a Glance
HomeEquity Bank is a Schedule 1 Canadian bank. It works almost only on reverse mortgages. Its CHIP family is the best-known name in this space. It has the widest product lineup. It also lends across most of Canada.
Equitable Bank is one of Canada’s larger Schedule 1 banks. It came to reverse mortgages as a challenger. Its Flex family is leaner — just three products. It fights hard on rate and fees. But it lends only in cities and most large towns in Ontario, Alberta, BC, and Quebec.
The Products
HomeEquity Bank: the CHIP family
| Product | Who it’s for | Key feature |
|---|---|---|
| CHIP | 55+ | The main product — lump sum or advances, marketed up to 55% of home value |
| CHIP Max | 55+ who need the most funds | Higher LTV than standard CHIP, at a higher price; case-by-case above standard limits |
| CHIP Open | Borrowers who may repay soon | No prepayment penalties at any time, in exchange for a higher rate |
| Income Advantage | Borrowers who want steady income | Set advances instead of a lump sum, so interest builds on less of the balance early on |
Who can get a CHIP loan? You and your spouse must be 55 or older. The home must be your principal residence (the home you live in most of the time). And the home must be worth at least $250,000.
Equitable Bank: the Flex family
| Product | Who it’s for | LTV range | Key feature |
|---|---|---|---|
| Flex | 55+ | 15–55% | The core product; minimum home value $250,000 |
| Flex PLUS | 70+ | 43–59% | The highest LTV in Canada |
| Flex Lite | 55+ who need less | 15–40% | Lump sum only, maximum loan $800,000 — often Equitable’s lowest rate |
The Rates, With Dates
Equitable Bank posted these rates as of October 30, 2025. Check them again before you rely on them.
- Flex Lite: 5-year fixed 6.23% (APR 6.309%). This is often the lowest reverse mortgage rate in Canada.
- Flex: 5-year fixed 6.28% (APR 6.357%).
- Flex PLUS: 5-year fixed 7.43%. Ask the lender for the current APR.
HomeEquity Bank posts a broad range of 6.5%–8.5% for CHIP loans (per chip.ca, 2026). Your exact rate depends on the product and the term. CHIP Open, for one, costs more. That is the price of paying it off any time with no penalty. Ask for the current rate sheet with APRs before you compare.
Some context helps here. In mid-2026, standard mortgage rates run about 3.9%–4.4% for 5-year fixed terms, for well-qualified borrowers. Reverse mortgages cost about 1.5–2.5 points more than that. The premium is the price of no monthly payments. Could you qualify for a normal loan on your income? Then look at a refinance or a HELOC first. See our reverse mortgage vs HELOC guide. A reverse mortgage is not for everyone.
Rates change — confirm current rates. These numbers are dated snapshots, not offers.
The Fees
| Cost | HomeEquity Bank (CHIP) | Equitable Bank (Flex) |
|---|---|---|
| Setup / closing fee | $1,795 (CHIP, CHIP Max); CHIP Open: greater of $2,995 or 1.25%; Income Advantage: $2,495 | $995, taken from your advance |
| Appraisal | $350–$600 | $350–$600 |
| Independent legal advice (ILA) | Required before funding; about $300–$1,800, based on lawyer and file | Required before funding; plus legal costs |
On setup costs alone, Equitable is usually about $800 cheaper. But these loans can run for decades. Over that long, the rate gap matters far more than the fee gap. A small rate edge, compounding for 15 years, dwarfs $800. Run both in our reverse mortgage calculator to see the long-run effect.
Head-to-Head Summary
| Factor | HomeEquity Bank CHIP | Equitable Bank Flex |
|---|---|---|
| Age minimum | 55+ (all on title) | 55+ (all on title); Flex PLUS 70+ |
| Min home value | $250,000 | $250,000 |
| LTV | Up to 55% marketed; CHIP Max higher case-by-case | Flex 15–55%; Flex PLUS 43–59%; Flex Lite 15–40% (max loan $800k) |
| Rates (see dates above) | Generally 6.5%–8.5% | From 6.23% (APR 6.309%) on Flex Lite, as of Oct 30, 2025 |
| Setup fee | $1,795 (main product) | $995 |
| Where they lend | Most of Canada | Cities & most large towns in ON, AB, BC, QC only |
| Payout options | Lump sum, set advances (Income Advantage), open product | Lump sum; advances on core products; Flex Lite lump sum only |
| No-negative-equity guarantee | Yes — as long as property taxes, insurance and upkeep are kept current | Yes — as long as property taxes, insurance and upkeep are kept current |
| Estate window on death | 180 days; no prepayment charge on death | Confirm terms with lender |
Both banks offer a no-negative-equity guarantee (a cap on what you can owe) — and at both, it holds only if you keep your property taxes, insurance, and upkeep current. Keep those up, and at sale you will not owe more than your home’s fair market value (what it would sell for on the open market). Fall behind on those duties, and either bank can void the guarantee.
When Each Lender Tends to Win
Flex tends to win when:
- You want the lowest rate, and your needs are modest. Flex Lite runs 15–40% of home value, lump sum only. It has often had the lowest rate in the market.
- You are 70 or older and need the most money. Flex PLUS goes from 43–59% of home value. That is the highest in Canada right now.
- You live in a city or large town in Ontario, Alberta, BC, or Quebec, in Equitable’s lending area.
- You want the lower setup fee ($995 vs $1,795).
CHIP tends to win when:
- Your home is outside Equitable’s map — a smaller town, or another province.
- You want steady monthly money. Income Advantage pays set advances over time. So less interest builds up in the early years than with a lump sum.
- You may pay it off soon. CHIP Open has no prepayment penalty at all. That is worth a lot if a home sale or other windfall is coming.
- Your estate needs time. CHIP gives the estate 180 days to repay after the last borrower dies. And there is no prepayment charge on death.
And sometimes neither wins
Do you qualify on your income? Then a HELOC or a normal refinance is cheaper money. Are you open to moving? Downsizing costs no interest at all. FSRA (the body that sets Ontario’s mortgage rules) expects these options to be weighed. There is a reason for that. Sometimes they are simply better. Our full Ontario reverse mortgage guide walks through the whole choice. And The true cost of a reverse mortgage shows the long-run math.
Want both lenders’ numbers on your own home? Get a free estimate, with no strings, from our reverse mortgage calculator. Then ask us for a side-by-side quote.
The Broker Edge: We Compare Both For You
Call HomeEquity Bank, and you will hear about CHIP. Call Equitable, and you will hear about Flex. Neither one will quote the other.
As a Dominion Lending Centres brokerage, we can arrange both. We also have options like Bloom and Home Trust where they fit. The lenders pay our placement fee. So in the typical case, our comparison costs you nothing directly. You get the same lender rates and the same lender fees. But you see the products side by side. And we explain the trade-offs in plain words: rate vs amount, lump sum vs advances, closed vs open. All loans are OAC (on approved credit) — the lender must approve your file.
One more thing to know. Both banks require independent legal advice (advice from your own lawyer, hired by you) before they fund. A good broker runs the whole path for you: the appraisal, the forms, the approval, the legal advice, and the closing. Start with a two-minute check on our qualify page. Still in research mode? Browse our reverse mortgage FAQ. When you are ready, we will pull current rate sheets from both lenders, with APRs and as-of dates. Then you decide with real numbers.
This article is general information, not financial, legal or tax advice. Mortgage products are subject to lender approval (OAC). Rates and product details change — confirm current terms before deciding. Speak with a licensed mortgage professional about your situation.
Frequently asked questions
Which is better, CHIP or Equitable Bank Flex?
Neither one wins for every person. Equitable Bank has often had lower rates and a lower setup fee, while CHIP has more products and serves more of Canada, and CHIP Max competes with Flex PLUS for bigger loans. The right pick depends on your age, your town, how much you need, and how you want the money paid out. That is why it helps to compare both through a broker.
Does Equitable Bank offer reverse mortgages everywhere in Canada?
No. Equitable Bank's Flex loans are only for cities and most large towns in Ontario, Alberta, British Columbia, and Quebec. CHIP from HomeEquity Bank covers more of Canada. If your home is outside Equitable's map, CHIP may be your main choice of the big two.
Who can borrow the most, CHIP or Equitable?
If you are 70 or older, Equitable Bank's Flex PLUS advertises loan-to-value of 43% to 59%, the highest in Canada right now. CHIP markets up to 55%, and CHIP Max can go higher case by case. For most people under 70, the two lenders are close, and your age, home, and location set the limit.
What are the fees for CHIP and Equitable Flex?
HomeEquity Bank charges a $1,795 closing and administration fee on CHIP and CHIP Max, while CHIP Open costs the greater of $2,995 or 1.25%, and Income Advantage is $2,495. Equitable Bank charges a $995 setup fee, taken from your advance. Both also need an appraisal, usually $350 to $600, plus independent legal advice before funding.
Are reverse mortgage rates the same as advertised when I apply?
Not always. Posted rates change often, and your real rate depends on the product, the term, and your file. Always ask for the APR and the as-of date, and confirm current rates with the lender or your broker before you decide.
Figures shown are estimates only — not an offer of credit or a commitment to lend. The amount you may qualify for depends on the lender's assessment of your age(s), property type, location, appraised value and any existing liens. Reverse mortgage lenders require independent legal advice before funding. A reverse mortgage is not suitable for everyone; alternatives include refinancing, a home equity line of credit, or downsizing.