Equitable Bank is 100% committed to the broker channel. The brokers who work with Equitable Bank appreciate that we are continually striving to make our service better to make their jobs a little easier.

Equitable Bank builds partnerships with its brokers. We help brokers help their clients. We build relationships not only for Equitable Bank but also for the broker partners who work with us. Working with our broker partners, we have created a reputation, and gained the respect of our customers, that encourages them to refer their family and friends.

The culture goes beyond business. We try to give back to the community as much as to benefit from it. We support the good causes in the communities where the brokers live and work. From the arts to charity events to volunteer work, we strive to build stronger, more supportive communities. In 2017, Equitable Bank employees and their business partners helped raise over $380,000 to support organizations including Toronto’s Mount Sinai Hospital and 40 Oaks, Juvenile Diabetes Research, Ride for Heart and the Emerging Digital Artists Award.

Truly a one-stop shop.

Equitable Bank, Canada’s Challenger Bank™, the country’s ninth largest independent Schedule I bank, offers a diverse residential lending, commercial lending and savings product suite. We have become a challenger bank by rethinking conventional approaches to banking and staying nimble so that we can act on new opportunities. We focus on markets and customers that are not well served by the country’s larger financial institutions, where we have a sustainable competitive advantage because of our focused, efficient approach to service.

Our deep knowledge of, and sensitivity to, the unique needs of our borrowers – along with that of their advisors – allows us to execute processes that are efficient and effective. While we place a strong emphasis on detailed analysis of the risks and security in each transaction, we supplement that analysis with our experienced team’s judgment. Our prime financing rates are very competitive, especially with high ratio mortgages. On the alternative side, we are willing to consider any transaction that makes sense from a risk perspective and provides the client with a tangible benefit. We price to risk using our own pricing matrix. In January 2018, Equitable launched an equity release mortgage business (commonly known as reverse mortgages) and is one of only two participants in the market. Under the brand, PATH Home Plan™, this business allows Canadian seniors to tap into the equity in their home to provide funds for retirement, without having to sell their home. At a time when personal pensions are stretched, and many seniors have substantial equity in their homes, this is another way for brokers to offer the best solution to their clients.

Considering the Future

Regulatory and environmental changes – principally rising interest rates – have led to a somewhat more balanced residential real estate market in Canada. Canadians will continue to seek housing in major urban areas, which is primarily where Equitable Bank lends. Individuals who do not qualify for prime mortgages will continue to borrow to purchase real estate, and Equitable’s superior customer service and competitive rates as both a prime and alternative lender will benefit the broker channel in this changing environment.

Sales were suppressed across the country after the federal banking regulator introduced a “stress test” that makes it more challenging for buyers seeking uninsured mortgages to qualify for financing. While the Canadian economy isn’t booming, the Bank of Canada is raising interest rates.

The Canadian Real Estate Association (CREA), says the stress test -- OSFI Guideline B-20 -- has been more effective at cooling the market than policy makers anticipated. CREA anticipates 459,900 homes will change hands this year with an average price of $499,100. As market conditions return to normal in 2019, CREA expects sales to rebound to 474,800 and prices to rise to $518,300.  Condos continue to lead the market, followed by townhouses, due to their comparable affordability.

The Regional Picture

Equitable Bank has systematically grown from its roots in the Greater Toronto Area to become a national financial services organization through its network of independent mortgage brokers and other business partners. Its team of specialists with deep local knowledge support these partners coast-to-coast focusing on urban centres with real estate markets that benefit from immigration and migration trends and diversified economies.

British Columbia:  A combination of provincial measures designed to cool down the housing markets in British Columbia – including an increased foreign buyer’s tax and proposed speculation tax – accompanied the federal stress test standards. The foreign-buyers tax was also being applied beyond the initial target of the Vancouver region. The City of Vancouver implemented a tax on empty homes that would primarily affect out-of-province residents who pay little or no B.C. income tax.   

But prices continue to rise in the Lower Mainland, Greater Vancouver, the Fraser Valley, Victoria and the remainder of Vancouver Island. Condos drive market growth, as the majority of buyers remain priced out of B.C.’s detached market. Mortgage delinquency rates in Vancouver remain low at 0.15%, according to the Canada Mortgage and Housing Corporation (CMHC).

Ontario: The pace of price growth has dropped throughout the Greater Golden Horseshoe except for Guelph. While the region has experienced declines, it masks recent month-over-month price gains as buyers react to the previous rapid price gains. In the Toronto region, the 905-area communities felt the biggest impact. The competitive market is cutting the buying power of house hunters in the smaller centers like Hamilton, Ajax-Oshawa-Pickering, Oakville-Milton and the Barrie area. Ottawa, where incomes are stable, is bucking the trend, as millennial buyers flock to the city for its relatively affordable detached homes.

Prairies: Prices are down in provinces whose economic prospects have faced difficulties because they are closely tied to natural resources. Calgary was one of the cities leading the drop in housing sales in Canada. Regina and Saskatoon saw more moderate declines. Despite the oil downturn, some western centers are thriving. Manitoba’s second biggest city, Brandon, is an example. Its economic base includes agriculture and food processing. Its economy is healthy with an unemployment rate of 5.2% per cent. Brandon is also one of the most welcoming cities for immigrants in the West, which has contributed to its growth.

Quebec: Montreal continues to sizzle as the hottest up-and-coming real estate market, reflecting the lag there as the rest of the Canadian real estate market thrived. While overall the city's real-estate market is enjoying a sustained growth period, downtown condo sales have been particularly hot. Much of the growth was driven by new construction projects. High-rise condos in downtown Montreal are a big draw for professionals with no children or older people with equity looking to downsize. Market observers estimate as many as 25% of condo purchases will be used as investments. Foreign investors have started to take note of the opportunities in Montreal. They now account for roughly 1.7% of Montreal purchases, though that's small compared to 3.4% in Toronto and 4.8% in Vancouver, according to a report from CMHC in collaboration with Statistics Canada.

Eastern Canada: The markets that saw price gains year-over-year were small cities. Because housing prices tend to be lower in Atlantic Canada, the differential generated by the stress test is less than the hot markets of Toronto and Vancouver in absolute dollar terms. According to the Canadian Real Estate Association, modest price growth is expected in 2018 for Prince Edward Island, New Brunswick and Nova Scotia, with prices declining in Newfoundland.