How to Choose Between Canada's 5 Reverse Mortgage Lenders
A practical decision-making guide to help you pick the right reverse mortgage lender based on your province, priorities, and financial situation.
Reverse Mortgage Centre•Feb 10, 2026Canada has five reverse mortgage lenders, and they are not interchangeable. Each has different rates, fees, product features, and provincial availability. Choosing the right one can save you thousands of dollars and ensure you get the features that matter most to your situation.
The Five Lenders at a Glance
Before diving into how to choose, here is a quick summary of each lender. For full details, visit our side-by-side comparison page.
CHIP — HomeEquity Bank
Canada’s largest and best-known reverse mortgage lender. Available in all 10 provinces, which makes it the only option for homeowners in Manitoba, Saskatchewan, New Brunswick, Prince Edward Island, and Newfoundland. Offers four products: CHIP, CHIP Max, CHIP Open, and Income Advantage. You can apply directly or through a broker.
Equitable Bank — Flex
Consistently offers the lowest rates in the market. Available in BC, Alberta, Ontario, and Quebec only. Broker-exclusive — you cannot apply directly. Three products: Flex, Flex PLUS, and Flex Lite. Lowest setup fees at $995.
Bloom Finance
The only lender offering a lifetime fixed rate — your rate never changes for the life of the loan. Available in Ontario, BC, and Alberta. Offers a unique Prepaid Mastercard for on-demand equity access. Three products: Standard, SafeRate™ (lifetime fixed, launched November 2025), and Prepaid Mastercard.
Home Trust — EquityAccess
A strong competitor with competitive rates and low setup fees ($995). Available in Ontario, BC, Alberta, and Nova Scotia. Broker-exclusive. Three products: EquityAccess, EquityAccess+, and EquityAccess Boost.
Fraction
Not technically a reverse mortgage — it is a shared-appreciation model where Fraction participates in your home’s future appreciation in exchange for a lower interest rate. Available in Ontario, BC, and Alberta. Minimum age is 18 (not 55). Different fee structure with an origination fee starting at 1%.
Decision Factor 1: Your Province
This is the first filter and the most important one. Not every lender operates in every province.
- Ontario, BC, Alberta: All 5 lenders available — you have the most choice.
- Quebec: CHIP and Equitable Bank only. Note that Quebec uses the civil law system, so the legal process involves a notary rather than a lawyer.
- Nova Scotia: CHIP and Home Trust.
- Manitoba, Saskatchewan, New Brunswick, PEI, Newfoundland: CHIP only.
- Territories (YT, NT, NU): No reverse mortgage lenders currently operate here.
Check our province guide for detailed information about availability in your area.
Decision Factor 2: Interest Rate
If getting the lowest rate is your top priority, Equitable Bank is the clear winner. Their Flex Lite product consistently offers the lowest reverse mortgage rate in Canada. However, you need to be in BC, Alberta, Ontario, or Quebec, and you must work with a broker.
If you want rate certainty for life, Bloom’s lifetime fixed rate is unique in the market. You pay a slightly higher rate upfront, but it never changes — even if market rates rise significantly.
Use our lender comparison to see the latest rates side by side.
Decision Factor 3: Setup Fees
Setup fees vary significantly:
| Lender | Setup Fee |
|---|---|
| Equitable Bank | $995 |
| Home Trust | $995 |
| CHIP | $1,795–$2,995 |
| Bloom | ~$2,300 |
| Fraction | 1%+ origination |
On a $200,000 loan, Fraction’s origination fee starts at 1% ($2,000+), but with legal, appraisal, and conveyancing costs the total setup can exceed $5,000. Equitable Bank and Home Trust have the lowest fees. Use our cost estimator to calculate the exact costs for your situation.
Decision Factor 4: How You Want to Receive Funds
Different lenders offer different payout options:
- Lump sum: Available from all lenders. You receive the full amount at closing.
- Scheduled advances: CHIP Income Advantage lets you receive regular payments over time, functioning like a supplemental income stream. This is ideal if you want to top up your monthly income rather than receive a large sum.
- On-demand access: Bloom’s Prepaid Mastercard loads equity onto a card that you spend as needed. No interest accrues until you use the funds.
- Staged draws: Some lenders allow you to take an initial amount and draw additional funds later without reapplying.
Decision Factor 5: Prepayment Flexibility
If you think you may want to repay the loan early (for example, if you sell within a few years), prepayment terms matter:
- CHIP Open: No prepayment penalty within the first 6 months — ideal if you need short-term bridge financing.
- Bloom Standard: Allows optional monthly interest-only payments, which keeps the balance from growing.
- Equitable Bank and Home Trust: Standard prepayment terms similar to conventional mortgages.
- Fraction: Early repayment terms are unique given the shared-appreciation structure.
Decision Factor 6: Broker Required or Direct?
Two of the five lenders require you to work with a mortgage broker:
- Equitable Bank: Broker-exclusive
- Home Trust: Broker-exclusive
The other three — CHIP, Bloom, and Fraction — accept direct applications, though you can still use a broker with them.
Working with a broker gives you access to all five lenders and lets you compare offers. Book a free consultation to speak with a licensed reverse mortgage broker.
The Fastest Way to Find Your Match
If you want a quick recommendation, take our 2-minute lender quiz. It asks 5 questions about your province, priorities, and situation, then recommends the best-fit lender.
For a deeper dive, our full lender comparison table shows every lender side by side — rates, fees, products, provinces, and features — so you can make the decision yourself.
And if you prefer to talk it through, book a free call with a licensed reverse mortgage specialist who can walk you through your specific options.