Reverse mortgage basics
CHIP vs. Equitable Flex vs. Bloom: Comparing Canada's Big Three Reverse Mortgage Lenders
Clients often ask me which lender is "the best." The honest answer is that all three majors are legitimate, federally regulated options, and the right one depends on your age, your property, and what matters most to you. Here is a fair look at each.
Three lenders, one product category, real differences
Canada's reverse mortgage market has grown over the years but is still led by three major names: HomeEquity Bank, Equitable Bank, and Bloom Financial. All three offer a version of the same basic product, a loan secured against your home for owners 55 and older, with no required monthly payments and a no-negative-equity guarantee. But the products underneath that shared foundation are not identical, and the differences can matter for your specific situation. I'll go through each honestly, without picking a favourite, because the right answer genuinely depends on the person.
HomeEquity Bank: the CHIP Reverse Mortgage
HomeEquity Bank has been operating in Canada since 1986, which makes it the oldest and largest reverse mortgage lender in the country by a wide margin. Its flagship product is the CHIP Reverse Mortgage, alongside variations like CHIP Max, aimed at maximizing the amount available, and CHIP Open, a more flexible short-term structure for people who expect to repay sooner. HomeEquity Bank lends in communities across the country, including smaller towns that some newer lenders do not yet reach, which matters if your property is outside a major city.
Because it has been in the market the longest, HomeEquity Bank also has the deepest track record for handling the "what happens later" questions: estate settlements, moves into long-term care, and the mechanics of what happens if a spouse passes away. If a long, proven history matters to you, this is typically where I start the conversation.
Where CHIP tends to fit best
- Homeowners in smaller or less common markets where lender coverage can be limited
- People who value the reassurance of the longest operating history in the category
- Straightforward lump-sum or scheduled-advance needs without a specific niche requirement
Equitable Bank: the Flex Reverse Mortgage
Equitable Bank is a Schedule I Canadian bank, publicly traded and regulated the same way as any major bank, which some clients find reassuring given how large a decision this is. Its Reverse Mortgage Flex product is built around flexibility: lump-sum advances, scheduled advances, or a combination, with variations aimed at different borrowing goals. Equitable has also built a reputation for competitive prepayment terms, meaning the cost of paying the loan down early or in full can be more forgiving than some alternatives, worth confirming directly since terms change.
Equitable's underwriting sometimes allows for borrowing limits that run a little higher than the industry's typical maximum for certain ages and properties, though the exact figure always depends on your specific application and appraisal, never a number to assume in advance.
Where Flex tends to fit best
- Homeowners who expect they might want to repay some or all of the balance ahead of schedule
- People who specifically want the reassurance of a large, publicly regulated Schedule I bank
- Situations where a slightly higher potential borrowing limit could make a meaningful difference
Bloom Financial: the newer, streamlined option
Bloom Financial is a more recent entrant, built with a digital-first, streamlined application process aimed at cutting down the paperwork and turnaround time that can make a reverse mortgage feel slow. Bloom is also known for a portability feature, sometimes called a "right to move," designed to let you transfer your reverse mortgage to a new principal residence if you downsize or relocate, without starting over from scratch, provided the new property qualifies. Bloom has also built in compassionate policies around prepayment charges in the event of an owner's death or a move into long-term care within a set window.
Where Bloom tends to fit best
- Homeowners who anticipate moving or downsizing at some point and want to preserve their terms
- People who want a faster, more digital application experience
- Situations where the compassionate handling of prepayment charges is a meaningful factor
The market has grown beyond three
These three names cover most of the reverse mortgages arranged in Ontario today, but the market has grown to roughly five lenders overall. Home Trust, a long-established Canadian alternative lender, has recently brought its own equity-release product to the market, joining the field alongside the three majors. I expect this list to keep growing as more lenders recognize the demand from Canada's aging homeowner population, which is exactly why staying current on the whole market, not just the two or three most famous names, is part of the job.
Why a licensed agent, not a single bank, is how you actually compare
If you walk into a HomeEquity Bank branch, you'll hear about CHIP. If you call Equitable, you'll hear about Flex. Neither one is going to walk you through the other's product, because that's not their job, and it shouldn't be expected of them. As a licensed mortgage agent with BRX Mortgage Inc., my job is different: I compare the actual products across the market for your specific age, property, and goals, and tell you honestly which one I think fits best, even when that means recommending a lender other than the one you called me about. You don't pay me a fee for this; the lender compensates the brokerage, and I'll always disclose exactly how that works. For the full picture on how reverse mortgages work before you compare lenders, my reverse mortgage explainer page is the place to start, and the self-assessment takes about three minutes if you want an honest first read.
One myth worth clearing up here too: none of these three, or any Canadian lender, offers anything resembling the American HECM program you may have read about online. If you want the full list of myths I hear regularly, see reverse mortgage myths Canadian seniors still believe.
What actually differs from the client's point of view
Beyond the marketing names, the practical differences that tend to matter most in my conversations with clients boil down to a handful of things. First, coverage: if your property is in a smaller Ontario community, HomeEquity Bank's longer reach can simply mean more lender options exist for you where a newer lender might not yet lend. Second, how you plan to draw the money: if you know you'll want scheduled monthly advances rather than one lump sum, all three offer that structure, but the specific terms and any fees on each advance can differ, worth confirming line by line rather than assuming they're identical. Third, your appetite for paperwork and turnaround speed: some clients want the fastest possible process and are comfortable with a newer, digital-first lender; others want the comfort of a long-established name even if the process takes a little longer.
None of these differences make one lender objectively "better" in the abstract. They make one lender objectively better for a specific person's specific situation, which is exactly why comparing them side by side with your actual numbers, rather than picking based on brand recognition alone, is worth the extra step.
A word about switching lenders later
People sometimes ask whether they're locked into whichever lender they start with. Generally, yes, for the life of that particular loan, though you always have the option to repay it in full (subject to any prepayment charges) and start fresh with a different lender if your circumstances change enough to justify it. This is uncommon simply because the costs of unwinding and restarting rarely pencil out, but it's not impossible, and it's one more reason the initial comparison across lenders is worth doing carefully the first time rather than rushing to whichever name you recognize.
Side by side, at a glance
| HomeEquity Bank (CHIP) | Equitable Bank (Flex) | Bloom Financial | |
|---|---|---|---|
| Operating since | 1986 | Schedule I bank, reverse mortgages a newer line of business | More recent entrant |
| Market position | Largest, longest track record | Large publicly traded Schedule I bank | Digital-first, streamlined process |
| Notable strength | Broad coverage, including smaller communities | Prepayment flexibility, higher potential limits in some cases | Portability ("right to move") and compassionate policies |
| Products | CHIP, CHIP Max, CHIP Open | Flex, Flex PLUS, Flex Lite | Reverse mortgage with portability feature |
Factual product information current to July 10, 2026, and subject to change by each lender. This is not a recommendation of any single lender; the right fit depends on your specific situation. No interest rates are quoted here because they change frequently and should always be confirmed with current, personalized quotes.
Questions people ask about this
Which of the three major lenders is the biggest?
HomeEquity Bank, provider of the CHIP Reverse Mortgage, is the oldest and largest reverse mortgage lender in Canada, operating since 1986. Equitable Bank and Bloom Financial are smaller but well established and federally regulated players in the same market.
Do interest rates differ significantly between the three lenders?
Rates change with market conditions and can shift between lenders at different times, so there is no fixed answer to which one is cheapest today. That is exactly why comparing live, current quotes across lenders matters more than assuming one brand is always less expensive.
Can I move to a new home and keep my reverse mortgage?
It depends on the lender and product. Bloom Financial offers a portability feature designed to let you transfer a reverse mortgage to a new principal residence without losing favourable terms, provided the new property qualifies. Other lenders handle a move differently, so this is worth confirming with your agent before you list your home.
Are there other reverse mortgage lenders in Canada besides these three?
Yes. The market has grown to roughly five lenders. Home Trust is a newer entrant with its own equity-release product, and the space continues to evolve. A licensed mortgage agent tracks the full field so you are not limited to whichever single lender a bank branch happens to offer.
This article is general education for Ontario residents, current to July 10, 2026, and is not legal, tax, or investment advice. Reverse mortgage features vary by lender; approval, rates, and amounts are never guaranteed. Please consult an independent legal or financial advisor about your personal situation.