What is Bloom Finance's Lifetime Fixed-Rate Reverse Mortgage?

Bloom's Lifetime Fixed-Rate Reverse Mortgage is Canada's first and only reverse mortgage that locks the interest rate for the entire life of the loan — not just a 5-year term. At 6.69%, you never face renewal risk or rate increases. This is fundamentally different from CHIP and Equitable Bank, where your rate resets every 5 years at whatever market rates are at that time.

How does the Bloom Prepaid Mastercard work?

The Bloom Prepaid Mastercard lets you access your reverse mortgage equity on demand by loading funds onto a prepaid card. Instead of drawing a large lump sum, you spend only what you need, when you need it. You only accrue interest on funds that have been loaded to the card, which can significantly reduce your total borrowing cost compared to taking a single lump sum.

Does Bloom charge a prepayment penalty if I sell my home?

Bloom does NOT charge a prepayment penalty if you sell to downsize, move to assisted living or long-term care, or if the borrower passes away. However, for other early exits, Bloom charges a declining penalty: 8% in Year 1, 7% in Year 2, decreasing by 1% per year. This is steeper than CHIP or Equitable in the early years, but the no-penalty exceptions for life events are more generous.

Does Bloom pay for the home appraisal?

Yes. Bloom Finance covers the cost of the home appraisal, which typically costs $300–$500. Neither CHIP nor Equitable Bank covers this cost. Combined with no application fee, this reduces the upfront out-of-pocket cost for Bloom borrowers.

In which provinces is Bloom Finance available?

Bloom Finance is available in three provinces: Ontario, British Columbia, and Alberta. It is not available in Quebec (where CHIP and Equitable Bank operate) or in any other province. If you live outside ON, BC, or AB, Bloom is not an option.

Bloom Finance Reverse Mortgage

Canada's first lifetime fixed-rate reverse mortgage, a Prepaid Mastercard for on-demand equity access, and no prepayment penalty if you downsize or move to assisted living. Bloom is the newest and most innovative player in the Canadian reverse mortgage market.

Who Is Bloom Finance?

Bloom Finance is a Canadian fintech company founded in 2019, making it the newest entrant into the Canadian reverse mortgage market. Unlike HomeEquity Bank (a federally regulated Schedule I bank) and Equitable Bank (a Schedule I bank that is broker-exclusive), Bloom is a private lender that distributes through both brokers and direct-to-consumer channels.

Despite being the smallest of the three lenders, Bloom has introduced two products that are genuinely unique in the Canadian market: the Lifetime Fixed-Rate Reverse Mortgage (Canada's first) and the Bloom Prepaid Mastercard (on-demand equity access via a prepaid card). These innovations address two real pain points that CHIP and Equitable Bank do not solve: renewal risk and the inefficiency of large lump-sum draws.

The 3 Bloom Products

1. Bloom Reverse Mortgage (Standard)

Bloom's standard product is available to borrowers aged 55 and older with a home worth at least $250,000 in Ontario, British Columbia, or Alberta. The maximum LTV is up to 55% depending on age.

The standard product offers flexible advance options: lump sum, monthly payments, or a combination, with the option for no monthly payments (interest compounds on the full balance). This is comparable to CHIP's flagship product and Equitable Bank's standard Flex.

2. Bloom Lifetime Fixed-Rate Reverse Mortgage

This is Bloom's most important product and Canada's first lifetime fixed-rate reverse mortgage. The rate — currently 6.69% — is locked for the entire life of the loan, not just a 5-year term.

To understand why this matters, consider what happens with CHIP and Equitable Bank: your rate is fixed for 5 years, then your loan renews at whatever market rates are at that time. If rates have increased, your interest cost goes up — and because reverse mortgage balances grow over time (you are not making payments), even a small rate increase can have a significant compounding effect.

With Bloom's Lifetime Fixed-Rate product, this risk is completely eliminated. You know exactly what your rate will be for the entire duration of the loan — whether you hold it for 5 years, 15 years, or 30 years. For borrowers who plan to stay in their home for a long time, this certainty can be worth more than a slightly lower initial rate from Equitable Bank.

Consider a scenario: a 65-year-old takes a $200,000 reverse mortgage and stays in their home for 20 years. With Bloom's lifetime 6.69% rate, the math is predictable from day one. With CHIP or Equitable Bank, the rate could be lower initially but might increase at each 5-year renewal — and the compounding effect over 20 years can produce dramatically different outcomes depending on the rate environment at each renewal.

Key detail: The lifetime rate (6.69%) is higher than Equitable Bank's Flex Lite (6.44%) and Flex (6.54%) initial rates. The question is whether eliminating renewal risk is worth paying an extra 0.15–0.25% upfront. For borrowers who expect to hold the loan for more than one 5-year term, the answer is often yes.

3. Bloom Prepaid Mastercard

The Bloom Prepaid Mastercard is a completely unique product in the Canadian reverse mortgage market. Instead of drawing a lump sum or receiving scheduled advances, borrowers access their equity on demand by loading funds onto a prepaid Mastercard.

Here is why this matters: with a traditional reverse mortgage, if you draw $100,000 as a lump sum but only need $20,000 immediately, you are paying interest on the full $100,000 from day one. With the Bloom Prepaid Mastercard, you only load (and pay interest on) the amount you actually need, when you need it. This can dramatically reduce your total interest cost.

The Mastercard works anywhere Mastercard is accepted — groceries, gas, utilities, online purchases, healthcare expenses. It turns your home equity into a flexible spending tool rather than a large, one-time financial event.

This product is ideal for borrowers who:

Do not have a specific large expense but want a financial safety net
Want to supplement their monthly spending without drawing a lump sum
Are disciplined spenders who want to minimize interest costs
Prefer the simplicity of a card over managing a bank account with reverse mortgage funds

Rates and Fees

Product	Rate	Max LTV	Advance Options
Bloom Reverse Mortgage	Contact for rate	Up to 55%	Lump sum, monthly payments, or combination; option for no monthly payments
Bloom Lifetime Fixed-Rate	6.69% (lifetime)	Up to 55%	Single lump sum or on-demand draws with optional monthly payments
Bloom Prepaid Mastercard	Contact for rate	Up to 55%	On-demand via prepaid card

Setup fee: approximately $2,300, which includes processing, appraisal, and the ILA (Independent Legal Advice) certificate. This is higher than Equitable Bank's $995 but comparable to CHIP's $1,795–$2,995 range.

A key difference: Bloom pays for the home appraisal. Neither CHIP nor Equitable Bank covers this cost, which typically runs $300–$500. This partially offsets Bloom's higher setup fee.

Prepayment: The Most Important Detail

Bloom's prepayment structure is the most nuanced of the three lenders, and it contains both the best and worst terms in the market depending on your situation.

No penalty at all if you repay the loan because:

You are downsizing to a smaller home
You are moving to assisted living or long-term care
The borrower passes away (estate settles the loan)

This is more generous than both CHIP and Equitable Bank, which charge penalties regardless of the reason for early repayment (with the exception of CHIP Open's 6-month penalty-free window).

Steep penalties for other early exits:

Year 1: 8% of the outstanding balance
Year 2: 7%
Year 3: 6%
Year 4: 5%
Year 5: 4%
Year 6: 3%
Year 7: 2%
Year 8+: 1%

An 8% penalty on a $200,000 loan is $16,000 — significantly higher than CHIP or Equitable Bank's penalties in Year 1. However, the declining schedule means the penalty drops substantially over time, and the life-event exceptions mean most borrowers who leave their home for the common reasons (downsizing, health, death) pay nothing.

Bottom line: If you are confident you will stay in your home long-term or expect to leave only for a life event (downsizing, care, or death), Bloom's prepayment terms are actually the most generous. If there is any chance you might want to repay the loan for other reasons within the first few years, CHIP or Equitable Bank offer more favourable early-exit terms.

Provincial Availability

Bloom Finance is available in three provinces only:

Ontario
British Columbia
Alberta

Notably, Bloom is not available in Quebec — where both CHIP and Equitable Bank operate. If you live in Quebec, or in any province not listed above, Bloom is not an option.

No-Negative-Equity Guarantee

Like CHIP and Equitable Bank, Bloom provides a no-negative-equity guarantee. You will never owe more than the fair market value of your home at the time of sale, provided you have maintained the property, paid property taxes, and kept insurance current.

Who Is Bloom Best For?

Bloom is the right choice for borrowers who:

Want lifetime rate certainty — the 6.69% Lifetime Fixed-Rate product eliminates all renewal risk forever
Plan to stay in their home long-term — the longer you hold the loan, the more valuable the lifetime rate lock becomes
Want on-demand equity access — the Prepaid Mastercard is unique in Canada and minimizes unnecessary interest
Expect to leave their home for a life event — no prepayment penalty for downsizing, assisted living, or death
Live in ON, BC, or AB — Bloom is not available elsewhere
Want the appraisal covered — Bloom pays for it; the other lenders do not

How Bloom Compares

Bloom's lifetime fixed rate (6.69%) sits between Equitable Bank's Flex Lite (6.44%) and CHIP's flagship rate (~7.24%). If your primary goal is the absolute lowest initial rate, Equitable Bank wins. If you want national coverage or rural property eligibility, CHIP wins. Home Trust (EquityAccess), Canada's newest reverse mortgage entrant (October 2025), adds competitive pressure — ask your broker for their latest pricing. Bloom's advantage is unique products — lifetime rate certainty and the Prepaid Mastercard — that no competitor offers.

If you are under 55 or want a different model entirely, Fraction is a shared-appreciation alternative with no age requirement — though it works very differently from a reverse mortgage.

The right lender depends on what you value most: lowest initial rate (Equitable Bank), broadest coverage and most product options (CHIP), newest entrant with competitive pricing (Home Trust), or lifetime rate certainty and innovative access tools (Bloom). See our full comparison or take the lender quiz to find your match.