reverse mortgage
CHIP vs Equitable Bank Flex: Reverse Mortgages Compared
Published July 2, 2026 · By YYZ Mortgage
Two banks dominate Canada’s reverse mortgage market: HomeEquity Bank, whose CHIP brand practically invented the category here, and Equitable Bank, the challenger whose Flex family has pushed rates and limits in borrowers’ favour.
If you’re 55 or older and comparing the two, here’s the plain-language breakdown — products, rates with APRs, fees, lending limits, and geography. We’re a brokerage in the Dominion Lending Centres network with access to both lenders, so we have no horse in this race: we compare both for you, and the better fit depends on your situation, not our shelf.
One ground rule before the numbers: reverse mortgage rates change regularly. Every figure below carries its as-of date, and you should confirm current rates before deciding — 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 focused almost entirely on reverse mortgages. Its CHIP family is the most recognized name in the space, with the broadest product lineup and wide geographic coverage.
Equitable Bank is one of Canada’s larger Schedule 1 banks, and entered reverse mortgages as a challenger. Its Flex family is leaner — three products — and it competes hard on rate and fees, but lends only in cities and most large towns in Ontario, Alberta, BC, and Quebec.
Product Lineups
HomeEquity Bank: the CHIP family
| Product | Who it’s for | Key feature |
|---|---|---|
| CHIP | 55+ | The flagship — lump sum or advances, marketed up to 55% of home value |
| CHIP Max | 55+ needing maximum funds | Higher LTV than standard CHIP, priced higher; case-by-case above standard limits |
| CHIP Open | Borrowers expecting to repay soon | No prepayment penalties at any time, in exchange for a higher rate |
| Income Advantage | Borrowers wanting steady income | Scheduled advances instead of a lump sum, so interest accrues on less of the balance early on |
Eligibility across the family: borrower and spouse 55+, primary residence, minimum home value $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+ needing less | 15–40% | Lump sum only, maximum loan $800,000 — typically Equitable’s lowest rate |
Rates: The Numbers, With Dates
Equitable Bank (posted rates as of October 30, 2025 — re-verify before relying on them):
- Flex Lite: 5-year fixed 6.23% (APR 6.309%) — typically the cheapest reverse mortgage rate in Canada
- Flex: 5-year fixed 6.28% (APR 6.357%)
- Flex PLUS: 5-year fixed 7.43% (confirm current APR with the lender)
HomeEquity Bank publishes a general range of 6.5%–8.5% for CHIP products (per chip.ca, 2026). Exact rates vary by product and term — CHIP Open, for example, prices higher in exchange for penalty-free prepayment. Ask for the current rate sheet with APRs before comparing.
For context, mid-2026 conventional mortgage rates for well-qualified borrowers run roughly 3.9%–4.4% for 5-year fixed terms. Reverse mortgages carry a premium of roughly 1.5–2.5 percentage points over conventional — the price of never making a monthly payment. If you’d qualify for conventional financing, compare a refinance or HELOC first; see our reverse mortgage vs HELOC comparison. A reverse mortgage is not for everyone.
Rates change — confirm current rates. These figures are snapshots with dates attached, not offers.
Fees Compared
| 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, deducted from your advance |
| Appraisal | $350–$600 | $350–$600 |
| Independent legal advice (ILA) | Required before funding; ~$300–$1,800 depending on lawyer and complexity | Required before funding; plus legal costs |
On setup costs alone, Equitable is typically about $800 cheaper. Over a loan measured in decades, though, the rate difference matters far more than the fee difference — a fraction of a percentage point 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 (flagship) | $995 |
| Geography | Broad Canadian coverage | Cities & most large towns in ON, AB, BC, QC only |
| Payout options | Lump sum, scheduled advances (Income Advantage), open product | Lump sum; advances on core products; Flex Lite lump sum only |
| No-negative-equity guarantee | Yes — provided property taxes, insurance and maintenance are kept current | Yes — provided property taxes, insurance and maintenance are kept current |
| Estate window on death | 180 days; no prepayment charge on death | Confirm terms with lender |
Both lenders’ no-negative-equity guarantees are conditional in the same way: you won’t owe more than your home’s fair market value at sale provided property taxes, insurance and maintenance are kept current. Default on those obligations and the guarantee can be voided — at either bank.
When Each Lender Tends to Win
Equitable Flex tends to win when:
- Rate is your priority and your needs are moderate. Flex Lite’s 15–40% LTV, lump-sum-only structure has typically carried the lowest rate in the market.
- You’re 70+ and need maximum funds. Flex PLUS’s 43–59% LTV is currently the highest available in Canada.
- You live in an eligible city or large town in Ontario, Alberta, BC, or Quebec.
- You want the lower setup fee ($995 vs $1,795).
CHIP tends to win when:
- Your property is outside Equitable’s lending map — smaller towns, other provinces.
- You want income-style payouts. Income Advantage’s scheduled advances are purpose-built for topping up monthly cash flow, which keeps early-years interest lower than a lump sum.
- You may repay soon. CHIP Open eliminates prepayment penalties entirely — valuable if a home sale or other windfall is coming.
- Estate flexibility matters. CHIP’s terms include a 180-day window for the estate to repay after the last borrower’s death, with no prepayment charge on death.
And sometimes neither wins
If you qualify on income, a HELOC or conventional refinance is cheaper money. If you’re open to moving, downsizing costs no interest at all. Ontario’s regulator expects these alternatives to be considered for a reason — sometimes they’re simply better. Our complete Ontario reverse mortgage guide covers the full decision, and The true cost of a reverse mortgage shows the long-run math.
See both lenders’ numbers on your home: get a free, no-obligation estimate with our reverse mortgage calculator, then ask us for a side-by-side quote.
The Broker Advantage: We Compare Both For You
Call HomeEquity Bank and you’ll hear about CHIP. Call Equitable and you’ll hear about Flex. Neither will quote the other.
As a Dominion Lending Centres brokerage, we’re licensed to arrange both — plus alternatives like Bloom and Home Trust where they fit — and lenders pay our placement fee, so in the typical case our comparison costs you nothing directly. Same lender rates, same lender fees, but with the products lined up side by side and the trade-offs explained in plain language: rate vs. amount, lump sum vs. advances, closed vs. open.
Beyond lender choice, both banks require independent legal advice before funding, and a good broker manages the whole path — appraisal, application, approval, ILA, closing. Start with a two-minute check at our qualification page, or browse our reverse mortgage FAQ if you’re still in research mode. When you’re ready, we’ll pull current rate sheets from both lenders — with APRs and as-of dates — and let 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 is better across the board. Equitable Bank has often posted lower rates and a lower setup fee, while HomeEquity Bank's CHIP family offers more product variety, nationwide reach, and its Flex PLUS rival for high LTV is matched by CHIP Max. The right choice depends on your age, location, how much you need, and how you want the money paid out — which is why comparing both through a broker makes sense.
Does Equitable Bank offer reverse mortgages everywhere in Canada?
No. Equitable Bank's Flex products are available in cities and most large towns in Ontario, Alberta, British Columbia, and Quebec only. HomeEquity Bank's CHIP has broader geographic reach. If your home is outside Equitable's lending areas, CHIP may effectively be your main option among the big two.
Who can borrow the most, CHIP or Equitable?
For borrowers 70 and older, Equitable Bank's Flex PLUS advertises loan-to-value of 43% to 59%, currently the highest in Canada. CHIP markets up to 55%, with CHIP Max going higher case by case. For most borrowers under 70, the two lenders' limits are broadly comparable and depend on age, property, and location.
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 is the greater of $2,995 or 1.25% and Income Advantage is $2,495. Equitable Bank charges a $995 setup fee deducted from your advance. Both also require an appraisal, typically $350 to $600, and independent legal advice before funding.
Are reverse mortgage rates the same as advertised when I apply?
Not necessarily. Posted rates change regularly, and your actual rate depends on the product, term, and your application. Any rate you compare should come with its APR and an as-of date, and you should confirm current rates with the lender or your broker before making a decision.
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.