CHIP vs Equitable Bank: Comparing Canada's Two Reverse Mortgage Lenders

Canada has exactly two reverse mortgage lenders: HomeEquity Bank (which markets the CHIP Reverse Mortgage) and Equitable Bank. Both are federally regulated banks, both offer the no-negative-equity guarantee, and both will lend up to roughly 55% of your home value.

But they're not identical. Here's how they actually differ, and how to think about which one fits your situation.

HomeEquity Bank (CHIP)

HomeEquity Bank has been in the Canadian reverse mortgage market since 1986 and originated the CHIP product (which stands for Canadian Home Income Plan). They're the older, larger, more established player.

Strengths:

• Largest market share — the brand most people recognize
• More flexible underwriting on properties (slightly broader eligibility for condos, smaller markets)
• Strong customer service infrastructure
• Extensive broker network

Trade-offs:

• Slightly higher administration fee ($1,795)
• Rates often slightly higher than Equitable Bank for comparable terms

Equitable Bank

Equitable Bank entered the reverse mortgage market in 2018, much later than CHIP. They've gained market share by being more competitive on rates and offering more flexible products.

Strengths:

• Often lower interest rates (especially on shorter fixed terms)
• The "Flex" product offers a line-of-credit-style draw, not just lump sum
• Slightly more aggressive maximum LTVs in some scenarios
• Faster digital application process

Trade-offs:

• Slightly tighter property eligibility (favours major urban markets)
• Smaller broker network

The Flex Product (Equitable Only)

Equitable Bank's Flex product deserves special mention. It functions more like a HELOC — you're approved for a maximum amount, and you can draw funds as needed up to that limit. Interest only accrues on what you've actually drawn.

This is ideal for borrowers who don't need a single lump sum but want available funds for emergencies, sporadic large expenses, or supplemental income. It's also useful for keeping the compounding interest in check, since you only owe interest on funds actually withdrawn.

Rate Comparison

Rates change constantly, but as a general pattern:

• 1-year fixed: Equitable Bank typically lower by 0.10–0.30%
• 5-year fixed: Roughly equivalent, varies week to week
• Variable: Equitable typically more competitive

The differences are real but not dramatic. Over a 5-year term on a $250,000 loan, a 0.25% rate difference works out to roughly $3,200 in extra interest — meaningful but not the deciding factor.

How Brokers Choose Between Them

Honest answer: it's case-by-case. We submit your file to whichever lender offers the best combination of:

• Maximum amount (which can vary by 5–15% between lenders for the same property)
• Best rate available that week
• Product fit (lump sum vs flex draw)
• Property and borrower eligibility

The good news: you don't have to choose. As your broker, we run your file with both lenders and you pick the better offer. There's no fee for shopping — the lender pays our commission either way.

What This Means for You

If you've been quoted a reverse mortgage by one lender directly, you may not be seeing the best available terms. Going through an independent licensed broker (which is what we are) means your file gets shopped to both lenders, and you keep all the leverage.

That's not a sales pitch — it's just how the market works.