Definitive Reverse Mortgage Canada 2026: CHIP vs Equitable vs Bloom vs HomeTrust Definitive Reverse Mortgage Canada 2026: CHIP vs Equitable vs Bloom vs HomeTrust

A Canadian reverse mortgage lets homeowners 55+ convert 15–55% of home equity into tax-free cash with no required monthly payments until you sell, move, or the last borrower passes away. Four federally supervised lenders offer it — CHIP, Equitable Bank, Bloom, and Home Trust — plus Fraction as a shared-appreciation alternative. This guide compares all five head-to-head on rates, loan-to-value by age, fees, protections, and process, so you can decide with confidence.

1. What a reverse mortgage is — and what it is not

A reverse mortgage in Canada is a loan secured against your primary residence. You already own the home; you borrow against the equity you have built. Interest is added to the balance and compounds over time. You make no monthly payments — the loan is repaid in full when you sell, permanently move out, or the last borrower dies and the estate settles. You keep title at all times.

It is not a government program like the U.S. HECM, it is not a grant, and it is not charity. It is a private product from federally supervised financial institutions (OSFI). It is also not a HELOC: a HELOC requires income and credit qualification, monthly interest payments, and periodic re-qualification; a reverse mortgage requires none of those and cannot be called as long as you meet the simple occupancy, tax, and insurance conditions.

Key mechanics every borrower should internalize before comparing lenders:

• Interest compounds. Debt grows; equity declines — unless home appreciation offsets it. Our equity projection calculator shows the crossover.
• NNEG is universal. Every regulated reverse mortgage includes No Negative Equity Guarantee: neither you nor your estate ever owes more than fair market value at sale.
• ILA is mandatory. Independent Legal Advice ensures a lawyer (not the lender or broker) certifies you understand NNEG, the 95% rule, and repayment triggers.
• Proceeds are tax-free. Because they are a loan, not income, they do not affect OAS, GIS, or CPP — though investing them can create taxable investment income that does.
• Existing debt is cleared first. If you carry a mortgage or HELOC, those balances are repaid from the reverse-mortgage proceeds at funding. You keep the remainder.

If you are brand new to the product, read What is a reverse mortgage? and How it works in Canada for the foundational version, then return here for the head-to-head comparison.

2. The four regulated lenders + Fraction — at a glance

Canada's market is tiny compared to the U.S.: four lenders offer true regulated reverse mortgages. Fraction is a fifth option — not a reverse mortgage — offering shared appreciation (you trade a share of future home appreciation for a lower rate and no interest compounding). We include it because many homeowners evaluate it alongside reverse mortgages.

* LTV = loan-to-value as a share of appraised home value, based on youngest borrower's age. CHIP Max reaches up to 59% standard and up to 65% through preferred-broker channels. Rates as of August 1, 2026 — see rates page for current ranges. Fraction is not a reverse mortgage and does not include NNEG.

For the interactive side-by-side, visit Compare lenders, and for a tailored recommendation in under a minute, take the Which lender is right for me? quiz. If you already know you want the math, jump to calculators.

3. CHIP Reverse Mortgage (HomeEquity Bank) — the national standard

HomeEquity Bank has offered the Canadian Home Income Plan (CHIP) since the mid-1980s. It is the only lender available in all ten provinces, the only one that routinely considers rural and remote properties, and the only one with four distinct products: the standard CHIP Reverse Mortgage, CHIP Max (higher LTV), CHIP Open (6-month term with no prepayment penalty), and Income Advantage (scheduled monthly or quarterly payments for income replacement).

Products and when to use them

• CHIP Reverse Mortgage (standard): The flagship — lump sum, scheduled advances, or a combination. Minimum home value ~$200,000. Max LTV ~55% standard (up to 59% with certain broker relationships). This is the default choice if you need flexibility and are not optimizing for the absolute lowest rate.
• CHIP Max: For homeowners who need more equity — up to 59% standard and up to 65% through preferred-broker channels, with a higher rate to compensate. Minimum home value ~$300,000. Best when Equitable and Bloom cannot meet your LTV needs or your property is not in their urban footprint.
• CHIP Open: A 6-month term designed as bridge financing. You can repay in full within the term with no prepayment penalty — useful if you are selling soon, awaiting an estate settlement, or building a bridge to a downsizing plan. Our break-cost estimator shows why this matters if you might exit early.
• Income Advantage: Minimum $1,000/month or $3,000/quarter, designed as an income-replacement product for retirees who want predictable monthly cash flow rather than a single lump sum.

Fees, rates, and fine print

Setup fee $1,795–$2,995 depending on product and province, plus appraisal and legal. Rates include both fixed and variable options (as of August 1, 2026, CHIP special fixed around ~6.39%, Income Advantage ~7.29% — check rates for the current band). Prepayment penalties apply if you repay early outside the CHIP Open window. Unique features: accepts rural properties, Platinum Privilege Program for volume brokers, and the broadest title and property-type acceptance.

Choose CHIP if: you live outside a major city, need a rural property approved, want scheduled income payments, need the highest possible LTV, or need a short-term bridge. Read the full CHIP guide or compare CHIP vs Equitable and CHIP vs Bloom.

4. Equitable Bank Flex — the broker-exclusive rate leader

Equitable Bank entered reverse mortgages in early 2018 and immediately became the rate leader. The critical detail: Equitable is broker-exclusive. You cannot get it by walking into a bank branch or calling the bank directly. The only path is through a licensed mortgage broker — which is the single most compelling reason to use a broker even if you were otherwise comparing lenders on your own.

Products

• Flex (standard): 15–55% LTV, lump sum plus scheduled advances, minimum home value $250,000. Around ~6.28% fixed 5-year as of August 1, 2026 — the lowest standard rate in the market.
• Flex PLUS: For borrowers 70+ needing higher LTV: 45–59%. The rate steps up (around ~7.43%) to price the extra leverage.
• Flex Lite: The lowest rate in Canada (~6.23%) in exchange for lower LTV (15–40%) and a single lump sum only. Ideal when you need a modest amount and want to pay the least interest.

Fees and coverage

Setup fee $995 — roughly $800–$2,000 less than CHIP and Bloom. Maximum loan size $800,000 (exceptions made for $1M+ with strong equity). Available in Ontario, British Columbia, Alberta, and Quebec — urban properties only. If your home is rural or outside those four provinces, Equitable will not approve it. Prepayment terms are more favourable than HomeEquity Bank in the first three years, which our break-cost calculator makes visible.

Choose Equitable if: your property is urban in ON/BC/AB/QC, you prioritize the lowest rate and lowest fee, and you are comfortable working through a broker (which you must). See the full Equitable Bank guide.

5. Bloom Finance — lifetime rate certainty (SafeRate™) and the Prepaid Mastercard

Bloom Finance is a Canadian fintech founded in 2019 that brought two genuine innovations: SafeRate™ — Canada's first lifetime fixed-rate reverse mortgage where the rate never renews — and the Bloom Prepaid Mastercard that lets you draw equity on demand like a debit card, without reapplying. Bloom is available in Ontario, British Columbia, and Alberta.

Why lifetime fixed matters

Every other reverse mortgage renews at the end of its term (typically 5 years) at whatever rates prevail then. If rates rise materially, your cost of carry rises at renewal even though you never missed a payment. Bloom's SafeRate eliminates renewal risk entirely: the rate you lock at funding is the rate for the life of the loan. That certainty has a price — SafeRate pricing typically sits above the lowest variable and 5-year fixed offers — but for borrowers who will carry the balance for 15–25 years, the insurance value is significant. Run equity projection at both a variable and a lifetime fixed to see the crossover.

Prepaid Mastercard and other features

• Bloom Prepaid Mastercard: Approved borrowers receive a prepaid Mastercard linked to their available equity. Tap to draw funds; repayments are optional. No need to request a new advance.
• No prepayment penalty for life events: If you downsize, move to assisted living, or pass away, Bloom waives the penalty. Other early exits incur a steep schedule (8% in Year 1, declining 1% per year).
• Bloom pays for the appraisal, offsetting part of the ~$2,300 setup bundle (which includes processing and ILA certificate).

Choose Bloom if: you want absolute rate certainty, you value on-demand access without paperwork, or no life-event prepayment penalty matters to you. Read the full Bloom guide.

6. Home Trust EquityAccess — the bank-issued straightforward option

Home Trust entered reverse mortgages in 2021 with EquityAccess, a bank-issued product available in Ontario, British Columbia, Alberta, and select markets in Quebec. Where CHIP overwhelms with choice and Bloom bets on innovation, Home Trust positions as a straightforward lump-sum product with bank governance and competitive pricing, targeting borrowers who want a simple, single-advance solution.

Setup costs land around ~$1,700–$2,000 plus appraisal and legal, with both fixed and variable options available at pricing between Equitable and CHIP depending on term and LTV. LTV tops out around 50–55% depending on age and postal code. Home Trust is not broker-exclusive — brokers and direct channels both exist — but pricing through a broker is typically as good or better. As with all regulated products, NNEG and ILA are included, and the loan is due on sale, permanent move, or estate settlement.

Choose Home Trust if: you want a simple bank-issued lump sum, you are urban in its footprint, and you do not need CHIP's rural reach, Equitable's lowest rate, or Bloom's lifetime fixed. Compare directly at Compare lenders or Home Trust guide.

7. Fraction — shared-appreciation alternative (not a reverse mortgage)

Fraction is not a reverse mortgage, but many homeowners evaluate it alongside one, so we include it for completeness and transparency. Instead of compounding interest, Fraction charges a lower current rate and, in exchange, takes a share of your home's future appreciation (or a fee tied to it). The term is 3–5 years, at which point you must renew, refinance, repay, or sell. Minimum age is 18+ (not 55+), and the product is available in urban Ontario, British Columbia, and Alberta.

How Fraction differs in plain terms:

• No NNEG. Because it is not a reverse mortgage, the No Negative Equity Guarantee does not apply.
• ILA is optional, not mandatory.
• Term due: You do not carry the balance for life; you face a decision in 3–5 years.
• Shared appreciation: If your home doubles in value, a portion of that gain goes to Fraction — which can be more expensive than interest if appreciation is strong, and cheaper if appreciation is flat.

Our stance: if your priority is aging in place for 15–25 years with no monthly payment and no term-risk, a regulated reverse mortgage fits better. If your priority is short-term, low-payment financing and you are comfortable trading future appreciation, Fraction may be worth modelling. See Fraction guide and CHIP vs alternatives.

8. Rates in 2026: fixed vs variable, and what actually drives your rate

As of August 1, 2026 (check rates for the current band), indicative 5-year fixed ranges are roughly: Equitable Flex ~6.23–6.28% (Lite/standard) and Flex PLUS ~7.43% at higher LTV; CHIP standard special ~6.39% and Income Advantage ~7.29%; Bloom SafeRate lifetime fixed prices above the 5-year band but locks forever; Home Trust prices between Equitable and CHIP depending on term. Variable options exist for CHIP, Equitable, and Home Trust; Bloom is fixed-only.

Your actual rate is set by: (a) the lender and product you choose, (b) your LTV (higher LTV = higher rate — Flex PLUS and CHIP Max both step up), (c) fixed vs variable selection, and (d) Bank of Canada policy and bond yields at funding — reverse rates are not posted daily like prime + discount; they are lender-set. No lender in Canada advertises a live rate table, so treat any number as a range until a broker confirms your specific approval. See understanding rates for how compounding interacts with term length.

9. Eligibility & how much you can borrow — age is the main lever

Eligibility is simpler than a traditional mortgage: all borrowers on title must be 55+, the home must be your primary residence where you live most of the year, it must meet the lender's minimum appraised value (typically $200,000–$300,000), and at least one lender must operate in your province. No income proof. No credit check. Property types that qualify include single-family homes, townhouses, condos, and some semi-detached; unique construction, bare land, or commercial-use properties generally do not.

How much you can borrow scales with the youngest borrower's age. Use this as a planning band — your approval will land inside it, not at a single number:

Two spouses matter: LTV is calculated on the youngest borrower, so a 78-year-old plus a 58-year-old qualifies at the 58-year-old band. If only one spouse is on title and the other is not yet 55, get advice before proceeding — spousal protections vary by lender and province. Explore your numbers with How much can I get?, then sense-check remaining equity over time with Equity Projection and the full eligibility guide.

10. Costs, fees & the 95% rule (why you will never owe more than your home is worth)

Upfront costs are higher than a HELOC but modest relative to the equity accessed. Budget for: appraisal (~$350–$650; Bloom pays for it), legal/closing and title insurance, ILA certificate ($500–$800), and the lender setup fee (Equitable $995, Home Trust ~$1,700–$2,000, CHIP $1,795–$2,995, Bloom ~$2,300 bundled). Then interest compounds on the funded amount. The All-In Cost Estimator and Amortization Calculator show the year-by-year balance, and the closing costs guide and 95% rule explainer go deeper.

The 95% rule is how Canada implements No Negative Equity Guarantee in practice: every regulated reverse mortgage is non-recourse beyond the home. If, at sale, the loan balance exceeds the fair market value (for example, because compounding outran appreciation or values fell), you and your estate repay at most 95–100% of that value — the lender absorbs the shortfall. The reverse is also true: if the home sells for more than the balance, you or your heirs keep the surplus equity. This is why ILA exists — a lawyer must certify you understand that limited recourse before the lender funds.

11. How it works — 6 steps from estimate to funding

Most files fund in 2–4 weeks once the appraisal and ILA are scheduled. Here is the sequence — the step-by-step guide and timeline have the day-by-day breakdown:

1. Estimate (5 minutes). Enter age, postal code, and estimated home value in the estimator. No personal info required. You get a lender-by-lender LTV band and a sense of which lenders will actually approve your property.
2. Compare lenders (15 minutes). Use Compare lenders and the head-to-head pages (CHIP vs Equitable, CHIP vs Bloom) plus rates to shortlist. If you want a tailored answer, take the quiz.
3. Broker consultation (30 minutes, free). A licensed agent (FSRA #12728) at Reverse Mortgage Centre / LendCity reviews your goals, confirms which lender and product fit, and explains the exact costs, advance options (lump sum vs scheduled advances vs Bloom Mastercard), and term.
4. Application + appraisal. You provide ID, title, property tax statement, and existing mortgage statement if applicable. The lender orders the appraisal to lock the appraised value that drives your final LTV.
5. Independent Legal Advice. You meet separately with a lawyer (in person or virtual) who certifies understanding of NNEG, the 95% rule, and repayment triggers. See ILA explained and documents you'll need.
6. Sign, fund, and choose how you receive funds. Closing pays off any existing secured debt from the proceeds. You receive the remainder as a lump sum, scheduled advances (monthly/quarterly), or Bloom Mastercard draws. From then on, there are no required payments.

You can reverse the process with exit strategies and cooling-off protections if circumstances change.

12. Taxes, benefits & your estate — what really changes

Because proceeds are a loan, not income: they are tax-free when you receive them and they do not affect OAS, GIS, or CPP. What can affect GIS is investment income you generate after investing those proceeds. Your principal residence remains tax-exempt on sale under normal CRA rules — the reverse mortgage itself does not create a capital gain. If you own rental or secondary properties, different rules apply; see Taxes, OAS, GIS & CPP and our Benefits Impact Calculator (model OAS/GIS before applying).

For your estate, the loan becomes due on the last borrower's death. The executor typically has 6–12 months to sell or refinance and repay the balance. If equity remains, it goes to the heirs. If the balance exceeds the sale price, NNEG caps repayment at fair market value. Heirs may also refinance into their own mortgage and keep the home. The deeper treatment — including probate and power-of-attorney considerations — is at estate impact, what happens at death, power of attorney, and spousal protections.

13. Reverse mortgage vs HELOC vs downsizing vs selling to family

This is the decision that deserves real math — not just brochure comparisons. Use the linked calculators to model your actual numbers rather than relying on averages:

• HELOC: Lower rate and lower setup cost today; requires income/credit qualification, monthly interest payments (~$1,500/month on a $250K balance at prime+1%), and periodic re-qualification that can fail on a fixed income. A HELOC can be called; a reverse mortgage cannot (provided you maintain property taxes, insurance, and occupancy). Model it at Reverse vs HELOC and read Reverse vs HELOC.
• Downsizing: Frees the most cash on paper but triggers 4–5% real estate commission, land transfer tax, moving costs, and often higher monthly housing costs in the new location. Most importantly, it requires leaving your home. Model it at Downsizing vs Reverse and pros & cons / dangers in Canada.
• Property tax deferral: In some provinces and cities (notably BC), you can defer property taxes at a low rate. It covers only taxes — not living expenses, debt consolidation, or care costs — and the balance is still due on sale. See property tax deferral.
• Selling to family: Keeps the home in the family but triggers a true sale with tax, financing, and family-dynamics considerations. See sell to a family member and CHIP vs alternatives.

If you are weighing staying versus leaving, also read how it works, eligibility, and the 95% rule together with what your parents are considering and the family conversation guide if the decision involves children.

14. Which lender should you choose? A decision framework

Start with what eliminates lenders, then optimize among survivors:

1. Geography eliminates first. Only CHIP covers all 10 provinces. Equitable covers ON/BC/AB/QC urban only. Bloom covers ON/BC/AB. Home Trust covers ON/BC/AB and select QC. If you are in Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Newfoundland, Prince Edward Island, or the territories — CHIP is the default. Check your province at provinces or Ontario, British Columbia, Alberta, Quebec.
2. Property type eliminates second. Rural or remote? CHIP is usually the only approval. Urban condo, townhouse, or semi in a major CMA? All four may approve. See eligibility.
3. Age and LTV eliminate third. Need the highest possible amount at 55? CHIP Max and Bloom top out; Equitable Flex Lite is deliberately lower LTV. At 70+ needing ~55–59%, Flex PLUS and CHIP Max compete — use the estimator to see who actually offers more on your value and age.
4. Then optimize for: lowest cost (Equitable wins), lifetime rate certainty (Bloom SafeRate wins), scheduled income (CHIP Income Advantage wins), short-term bridge (CHIP Open wins), or simple lump-sum bank product (Home Trust wins). The quiz encodes exactly this logic.

When in doubt, let a broker apply to two lenders at once — no extra appraisal, no downside — and choose after approvals land. That is the advantage of an independent brokerage over any single lender's website.

15. Provincial availability & property types — why your postal code matters as much as your age

Every lender must be licensed in your province and comfortable with your property. CHIP's national reach is its moat: a farmhouse 40 minutes outside Regina, a condo in Halifax, or a bungalow in St. John's can still qualify through HomeEquity Bank where the other three cannot. Urban coverage for Equitable, Bloom, and Home Trust means they decline properties outside major city boundaries even inside a covered province — a suburban property in Ontario qualifies; a rural cottage north of Peterborough may not. Within every province page we track which lenders operate there, minimum home value nuances, and whether ILA must be done by a lawyer in that province (it must).

Condo nuance: condos qualify broadly, but very low-value, very high-fee, or litigation-encumbered buildings can be declined. Manufactured homes, floating homes, bare-land condos, and commercial-use properties are generally ineligible. Your broker will confirm against the lender's property grid before ordering the appraisal — avoiding a wasted fee. If your situation is borderline, read am I ready and for professionals guidance.

16. Calculators, tools & next steps — model your numbers before you apply

This guide is the map; the calculators are the terrain. Run at least two before speaking to a broker so you arrive with informed questions:

• How Much Can I Get? (Eligibility Estimator) — your LTV band by lender, 30 seconds, no personal info.
• Home Equity Projection — remaining equity in 5, 10, 15, 25 years at different rates and appreciation assumptions.
• Reverse Mortgage vs HELOC — monthly payment, total interest, and call risk side by side.
• All-In Cost Estimator — setup fee + legal + appraisal + compounded interest in one view.
• Amortization Schedule — year-by-year balance growth; the reality of compounding.
• Downsizing vs Reverse Mortgage — net cash from selling after commissions, LTT, and moving vs staying with a reverse mortgage.
• OAS / GIS Benefits Impact — confirm proceeds do not claw back benefits and model investment-income effects.
• Break Cost Estimator — prepayment penalties if you exit early (and why CHIP Open exists).

Also bookmark: Reverse Mortgage Rates Canada 2026 for current bands, Education hub for every deep-dive, Consumer Protection for NNEG, scam, and cooling-off coverage, and Glossary for plain-English definitions.

When you are ready to talk, book a free consultation with a licensed agent (FSRA #12728) or contact us. Prefer to plan as a family first? Start with will it affect my inheritance and the family conversation guide.

FAQ — 10 questions homeowners ask most in 2026

Answers below are also published as FAQPage structured data for search and AI overviews. For the full site FAQ index, see FAQ.

Bottom line

If you are 55+, own a qualifying primary residence, and want to stay in your home without monthly payments, a regulated Canadian reverse mortgage is a legitimate, federally supervised tool — not a last resort. CHIP is the safest default for national and rural coverage; Equitable is the cheapest when you qualify and is worth accessing through a broker even if you were not planning to use one; Bloom is the right choice when lifetime rate certainty outweighs a slightly higher starting rate; Home Trust is the simple bank alternative. Fraction makes sense only when you deliberately want short-term financing and are comfortable trading future appreciation. Start with the math (estimate + equity projection), stress-test with HELOC and downsizing comparisons, then let a licensed broker (FSRA #12728) confirm the best lender for your postal code and age. That is how you make an expensive decision cheap.

This guide is maintained by Reverse Mortgage Centre — Mortgage Architects · LendCity and was last updated on 2026-08-30. For a curated orientation if you are new, begin at Start Here.