The best reverse mortgage at the lowest rates* in Canada

Access your home equity in tax-free cash. Stay in the home you love, and make no monthly payments.



You may be eligible for a reverse mortgage if:

  • you are 55 years old or over
  • you live in the major urban centres of Ontario, Quebec, British Columbia, or Alberta
  • your home is your principal residence (you live there for at least six months of a calendar year)
  • all title holders of the residence apply as joint borrowers (in ON, AB, BC)
  • the residence is owner-occupied and not a secondary home or cottage
  • your home is detached, semi-detached, condo, or townhome

What is a reverse mortgage?

In Canada, a reverse mortgage is a type of loan that is secured against your principal residence. This financing solution gives you access to tax-free cash with no mandatory ongoing payments.

How does a reverse mortgage work?

You’ll continue to own and live in your home, and you’ll never be forced to move or sell your property, as long as:

  • you live there for at least six months per year
  • you keep your residence in good order
  • you remain current with your property tax payments
  • you adhere to the loan terms

You can use a reverse mortgage for things like:

  • paying off debt
  • covering everyday expenses
  • making renovations
  • supporting your family
  • paying for in-home care

Interest is calculated on the outstanding balance of both principal and interest throughout the life of the loan. The outstanding balance will increase accordingly over time.

Your reverse mortgage must be repaid when the last remaining homeowner leaves the home, which generally happens through sale of property where the proceeds are used to pay back the loan.

As long as you meet your mortgage obligations, Equitable Bank guarantees that you will never owe more than the fair market value of your property where Fair Market Value is the amount that would be paid on the open market, on the applicable date, to buy the property, assuming there are no legal claims against the property.

The application process for an Equitable Bank Reverse Mortgage is simple and straightforward. Here’s how it works:

Reverse Mortgage application process 

Why Trust Equitable Bank with Your Reverse Mortgage?

As Canada's Challenger Bank™, Equitable Bank has grown to become the country's ninth-largest Schedule I bank.

Through our proven branchless approach and customer service focus, we provide Canadians with residential lending, commercial lending, and savings solutions. 

Here’s where a reverse mortgage with Equitable Bank wins:

Currently the lowest reverse mortgage rates in Canada*

Lower rates mean you preserve more home equity over time*

Flexible product: Take your funds how you want, when you want

Top-quality, no-pressure service

A bank you can trust: Managing almost $36B of loans in Canada and publicly traded on the TSX

Talk to a Reverse Mortgage Specialist at Equitable Bank today—we’re happy to walk you through it.

Reverse Mortgage FAQ

General Reverse Mortgage Questions

Qualifying for a reverse mortgage with Equitable Bank is largely based on property type, location, and borrower’s age. We lend to borrowers aged 55+ with homes in urban centres in Alberta, British Columbia, Ontario, and Quebec.
The amount Equitable Bank will lend depends on two factors. One, the borrower’s age. And secondly, the home’s appraised value. Borrowers can now access up to 55% of their home's value. Our eligibility calculator helps calculate how much you might be eligible for.
You can. While it’s encouraged to have a sound financial history, life happens and unforeseen circumstances arise. We get it—that’s why we have options for everyone.
You do. You will not transfer ownership of your property to the bank when receiving a reverse mortgage.
As long as you have met your mortgage obligations, the amount you owe on the due date will not be more than the fair market value.
You can take the mortgage proceeds upfront as a one-time advance (an Initial Advance). Alternatively, you can take a large sum upfront (minimum amount of $25,000) and the remaining funds as Single Advances and/or Recurring Advances scheduled over several years.
You must pay property taxes directly to the municipality.
At the time of application or during the life of the reverse mortgage, we may require a holdback to cover home repairs if deficiencies could affect liveability or have the potential to materially affect the home’s future value. We may also require a holdback if there are tax or condominium arrears.
A POA for property may be used when applying for a reverse mortgage. Your attorney must have the ability to deal with real property. The POA will not be permitted to apply on your behalf simply because you are out of the country.
Yes, we’re here to help. In addition, you will need to meet with a lawyer to receive Independent Legal Advice (ILA) to ensure you understand the product and the legal obligations.

You could use the funds to cover daily expenses, home renovations, medical bills, in-home care, family needs, trips, or help a relative with a down payment, it’s up to you.

We also offer a range of home-financing solutions. You can work with a mortgage broker to find a plan that works for you.

If you continue to meet your mortgage obligations, you should have no concerns about losing your home to the bank.
If you have a mortgage, it must be paid off so that the reverse mortgage can be registered in first priority. You can use the proceeds from the initial advance to pay off your existing mortgage, any outstanding debt, or lien registered against the property.
You do. You must repay the value of the mortgage principal, interest, and any fees. If your home increases in value, the gains are yours to keep.
A reverse mortgage with Equitable Bank is available in Alberta, British Columbia, Ontario, and Quebec.
At Equitable Bank, we offer reverse mortgages on detached, semi-detached, townhomes, and condos.
Yes, you can. We recognize needs change and our product is designed for that. That’s why we offer flexible options to repay a portion of principal and interest. If you choose to repay the entire balance, there may be a prepayment charge.
You can. Although no regular payments are required until the reverse mortgage becomes due, you have the benefit of prepayment privileges. This allows you to prepay your principal or interest without being subject to a prepayment charge (which can be calculated here). Of course, certain conditions must be met.

Interest payment - Prepay any of your interest outstanding once per calendar month.

Principal payment - Prepay up to 10% of your principal once per 12-month period (starting from your initial advance).

After 5 years - Prepay in excess of 10% of your principal or the entire outstanding balance within 30 days of an interest rate reset date.

After 10 years - Prepay in excess of 10% of your principal or the entire outstanding balance at any time.

1Subject to certain conditions.


Any payments received will be applied first to fees and charges, then to interest before being applied to principal.

If you exceed your prepayment privilege, you will be subject to a prepayment charge and applicable fees.

The value of the reverse mortgage must be equal to or greater than the value of any loan secured against the property.

For example, a borrower who qualifies for 40% on a $500,000 home could access $200,000, provided any loans they have secured by the home are less than $200,000.

Reverse mortgage rates, fees, and regulations

Yes, you must be at least 55 years old to qualify for a reverse mortgage with Equitable Bank.
However you like. Many Canadians use their reverse mortgage funds to repay existing loans or mortgages, help family members, purchase a new property, or simply to lead a more comfortable life.
Equitable Bank charges a one-time set-up fee of $995. Much like a regular mortgage, there are additional appraisal and Independent Legal Advice fees that come with closing a reverse mortgage.
To reduce interest accumulation, you can limit the amount of your initial advance and take out additional funds only as needed. There’s also the option of paying down interest monthly, without a prepayment charge.
Because no payments are required until the mortgage is due, reverse mortgage rates tend to be higher than standard mortgages. We offer a range of fixed and adjustable interest rates so you can choose the interest rate that works best for you.
There is a setup fee of $995.00, which will be deducted from the initial advance.

Reverse mortgage planning

Since the Equitable Bank Reverse Mortgage is meant for long-term lending with no quantified term, the due date of the mortgage is established on the occurrence of the earliest of any of these events:

  • Sale or transfer of the property
  • Default
  • When the last borrower moves into a long-term care or retirement residence
  • When the last borrower passes away

1Subject to certain conditions.

  • Principal and accrued interest
  • Default expenses, if any
  • Fees and costs
  • Prepayment charge, if any

Technically, you can't "outlive" a reverse mortgage.

As long as you meet your mortgage obligations, like paying property taxes and home insurance, the amount you owe on the due date will never be more than the fair market value.

If both spouses are registered as joint tenants, the surviving spouse can continue to be a borrower and is entitled to all the benefits a reverse mortgage has to offer.
The appraised value of your home must be at least $250,000.
At any time, the remaining equity on your home will depend on the difference between the home’s current value and the amount owing on the reverse mortgage. Learn more.
Provided you have met your mortgage obligations, the amount you owe to Equitable Bank on the due date will not exceed the fair market value.
Fair market value is the amount that would be paid on the open market, on the applicable date, to buy the property, assuming there are no legal claims against the property. This value would be established by a certified home appraiser.

More about reverse mortgages

Reverse mortgages are becoming more mainstream in financial planning conversations for Canadian seniors. This is a logical outcome of an aging population seeking to access a primary source of wealth from home equity—to meet their financial, social, and health needs. In 2019, for example, approximately 3,500 homeowners accessed a portion of their home equity. Read more.
The Equitable Bank Reverse Mortgage is designed to be a long-term solution for retired Canadians. However, we recognize that life changes happen and financial needs evolve. We have created our product with that flexibility in mind. Read more.
Much of the conversation on financial media platforms focuses on retirement. These discussions often centre around the amount of retirement savings needed to live comfortably, and caution against accumulating debt in your retirement years. What this commentary fails to consider are the curve balls that life can sometimes throw at you: family emergencies, unexpected deaths, injuries, job turnovers, and poor investments, just to name a few. Each of these events can have a severe impact on your financial well-being, and could cause you to dip into resources you had intended to use later in life. Read more.

Although Equitable Bank is a Schedule I Canadian Bank—like RBC, TD and Scotiabank—it’s different from its peers in many ways.

One important distinction is that you’ll never see an Equitable Bank brick-and-mortar branch, as the Bank’s branding states we would rather build your savings than build bank branches. Instead, Equitable Bank offers its residential lending products through many of the 15,000+ mortgage brokers operating across Canada. If you’re interested in learning more about mortgage brokers, check out Mortgage Professionals Canada’s website. This industry association represents about 11,500 mortgage broker members and is involved in many important aspects of Canadian residential real estate. Read more

When it comes to any lending product, the mind commonly goes to two places— how much will I get and how much will it cost me?

This post will focus on the “how much will it cost me” part, since interest rates for reverse mortgages are often misunderstood, especially when compared to other lending solutions. Read more.

Whether you’ve learned about reverse mortgages or are largely unfamiliar, it’s important to first shed any biases you may have in regards to carrying debt in retirement. Let’s focus on the facts and consider whether it could be a fit for your financial needs. Read more.

Here are your next steps

Need assistance? Contact Us.

Head Office - Toronto

Equitable Bank Tower
30 St.Clair Avenue West, Suite 700
Toronto, Ontario M4V 3A1

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Tel  416-515-7000
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Fax  416-515-7001
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