Reverse Mortgage Lenders in OntarioCHIP vs Equitable Bank vs Bloom — and When Home Trust Beats All Three
Most Ontario homeowners searching for a reverse mortgage think CHIP is the only option. It isn't. Three lenders offer true reverse mortgages in Canada — plus a fourth alternative (Home Trust) that often costs less if you can qualify. Here's the honest side-by-side.
Bottom line: CHIP is not the only reverse mortgage in Canada. Equitable Bank and Bloom Finance both offer competing products, typically at lower rates. Home Trust doesn't offer a reverse mortgage but does offer HELOCs and 2nd mortgages that solve the same problem more cheaply if you can service some monthly payment. Always quote all four before signing.
The Four Options Side-by-Side
| Factor | CHIP | Equitable Flex | Bloom | Home Trust |
|---|---|---|---|---|
| Product type | Reverse mortgage | Reverse mortgage | Reverse mortgage | HELOC / 2nd mortgage |
| Minimum age | 55 | 55 | 55 | None |
| Monthly payments | None | None | None | Required (interest-only min.) |
| Income verification | No | No | No | Yes |
| Rate band (2026) | 6.99% – 9.49% | 6.49% – 8.99% | 6.49% – 9.19% | 6.20% – 11.99% |
| Max advance (LTV) | 15%–55% (age-dependent) | 15%–55% (age-dependent) | 15%–55% (age-dependent) | Up to 80% (HELOC) |
| No negative equity | Yes | Yes | Yes | N/A (payments required) |
| Prepayment penalty | 3 mo. interest yrs 1–3 | 3 mo. interest yrs 1–3 | 3 mo. interest yrs 1–3 | 3 mo. interest (standard) |
| Best for | Long-term, want national brand | Rate-conscious 55+ | Digital-first 55+ | Qualifiers with cash flow |
Lender-by-Lender Deep Dive
HomeEquity Bank — CHIP
The market leader. Most advertised, rarely the cheapest.
Strengths
- • Longest track record in Canada
- • Full product suite (lump sum, income, single advance)
- • Widest broker network — every broker can place CHIP
Weaknesses
- • Highest reverse mortgage rates of the three
- • Steep prepayment penalties in years 1–3
- • Aggressive advertising creates borrower complacency
Equitable Bank — Flex Reverse Mortgage
The rate leader. Often 0.25%–0.75% below CHIP.
Strengths
- • Consistently lower posted rates than CHIP
- • Same 'no payment' and 'no negative equity' guarantees
- • Schedule I bank — same regulatory oversight as Big 6
Weaknesses
- • Geographic limits — some rural/small-market properties don't qualify
- • Slightly more conservative maximum advance (LTV) than CHIP
- • Less brand recognition — borrowers hesitate without a broker's assurance
Bloom Finance
The digital challenger. Fast, tech-forward, competitive pricing.
Strengths
- • Digital-first application, faster underwriting
- • Backed by Fairstone / Ontario Teachers' Pension Plan (institutional capital)
- • Competitive with Equitable Bank on rate
Weaknesses
- • Newest of the three — shortest track record
- • Narrower product menu than CHIP
- • Geographic and property-type restrictions apply
Home Trust — Alternative Products
Not a reverse mortgage — but often a cheaper equity solution.
Strengths
- • HELOC and 2nd mortgage rates well below any reverse mortgage
- • Interest-only payment options preserve cash flow
- • Ideal for borrowers who can service some monthly payment
Weaknesses
- • Requires income qualification and credit review
- • Not a true reverse mortgage — payments required
- • Stress test applies to conventional Home Trust mortgages
How to Choose
- Choose Equitable or Bloom if you're 55+, live in a major Ontario centre, and want the lowest reverse mortgage rate available.
- Choose CHIP if your property is rural or unique, if you need CHIP's specific income-stream feature, or if Equitable/Bloom decline your file.
- Choose Home Trust HELOC or 2nd mortgage if you have any pension, CPP, or other qualifying income — the interest cost is usually half that of a reverse mortgage.
- Get quotes from all four before signing anything. Rate differences of even 0.5% add up to $50,000+ over a 15-year horizon on a $250K advance.
FAQs
Who offers reverse mortgages in Canada besides CHIP?
Three lenders offer true reverse mortgages to Canadian homeowners: HomeEquity Bank (the CHIP program), Equitable Bank (Flex Reverse Mortgage, since 2018), and Bloom Finance (launched 2021, backed by Fairstone/Ontario Teachers'). Home Trust does not currently offer a reverse mortgage but does offer alternative equity products (HELOCs and 2nd mortgages) that sometimes solve the same problem at lower cost.
What is the Equitable Bank reverse mortgage?
Equitable Bank's Flex Reverse Mortgage is available to Ontario homeowners aged 55+ and typically prices 0.25%–0.75% below CHIP's comparable term. It offers 5-year fixed, 1-year fixed, and variable options with the same 'no monthly payments' and 'no negative equity' guarantees as CHIP. It's often the best-priced reverse mortgage for borrowers who qualify.
What is the Bloom reverse mortgage?
Bloom Finance is a newer entrant (2021) that offers reverse mortgages in Ontario, BC, Alberta, and Quebec to homeowners 55+. Bloom's model emphasizes digital application, faster funding, and competitive pricing with Equitable Bank. Product structure mirrors CHIP: no monthly payments, no negative equity guarantee, interest compounds until sale or move.
Does Home Trust offer a reverse mortgage?
No. Home Trust is a Schedule I bank that specializes in alternative lending — HELOCs, 2nd mortgages, and mortgages for self-employed or bruised-credit borrowers — but does not currently offer a reverse mortgage product. Some borrowers use a Home Trust HELOC or 2nd mortgage as a cheaper alternative to a reverse mortgage when they can qualify.
Which reverse mortgage lender has the lowest rate in Ontario?
As of 2026, Equitable Bank and Bloom typically post the lowest reverse mortgage rates in Ontario (6.49%–8.99% depending on term), with CHIP slightly higher (6.99%–9.49%). An independent broker can quote all three side-by-side because pricing shifts monthly and depends on your age, home value, LTV, and term selection.
Why doesn't CHIP have to compete on rate?
HomeEquity Bank spends heavily on national advertising (television, print, radio) and has been the household name for reverse mortgages in Canada for over 25 years. Most borrowers apply to CHIP directly without shopping — so CHIP has little pricing pressure. Working with an independent broker forces a real quote comparison across CHIP, Equitable, and Bloom.
Can I switch from CHIP to Equitable Bank or Bloom later?
Yes, but expect steep prepayment penalties for the first three years — typically 3 months of interest plus discharge and legal fees. After year three, switching becomes more economical. The cheapest path is to compare all three lenders upfront rather than start with CHIP and switch later.
Compare all four in one call
We quote CHIP, Equitable Bank Flex, Bloom Finance, and Home Trust alternatives side-by-side — across 80+ Ontario lenders. Independent, FSRA Brokerage #10874.