Best Mortgage Lenders in Canada in 2024 – Equitable Bank
Established in 1970 as The Equitable Trust Company, Equitable Bank has evolved to become Canada’s ninth-largest Schedule I bank. With its headquarters situated in Toronto, Equitable Bank has gained prominence as a financial institution specializing in two primary types of lending services: single-family residential and commercial lending.
Equitable Bank’s focus on single-family residential lending emphasizes its commitment to providing mortgage solutions to individuals and families looking to purchase or refinance homes. This segment of its services caters to the diverse needs of homeowners across Canada, offering various mortgage products and terms to suit different preferences and financial situations.
In addition to its residential lending services, Equitable Bank has established a strong presence in the commercial lending sector. This includes providing financial solutions to businesses and real estate ventures, contributing to the growth and development of the commercial landscape in Canada.
Over the years, Equitable Bank has embraced innovation and adaptability to meet the evolving needs of its clients. As a Schedule I bank, it operates within the regulatory framework defined by the Office of the Superintendent of Financial Institutions (OSFI), ensuring the integrity and stability of its operations.
As one of Canada’s leading financial institutions, Equitable Bank continues to play a vital role in the country’s banking sector, contributing to the economic well-being of individuals, businesses, and communities through its specialized residential and commercial lending services.
Types of Mortgages
Equitable Bank specializes in reverse mortgage rates. Let’s quickly walk you through all the mortgage interest rates the bank offers:
Standard Mortgages
1 year fixed (closed) 2.69% (APR 4.099%)
2 year fixed (closed) 2.89% (APR 3.669%)
3 year fixed (closed) 3.19% (APR 3.798%)
4 year fixed (closed) 4.09% (APR 4.325%)
5 year fixed (closed) 3.59% (APR 4.036%)
Reverse Mortgage Flex (setup fee: $995)
6 Month Fixed: 4.29% (APR 5.94%)
1 Year Fixed 3.89% (APR: 4.71%)
2 Year Fixed: 4.34% (APR: 4.71%)
3 Year Fixed: 4.39% (APR: 4.62%)
5 Year Fixed: 4.89% (APR: 4.99%)
5 Year Adjustable P + 1.64% (APR 4.24%)
Reverse Mortgage Flex PLUS (setup fee: $995)
6 Month Fixed 5.09% (APR 6.69%)
1 Year Fixed 4.69% (APR 5.48%)
2 Year Fixed 5.14% (APR 5.49%)
3 Year Fixed 5.19% (APR 5.39%)
5 Year Fixed 5.69% (APR 5.76%)
5 Year Adjustable P + 2.44% (APR 5.04%)
Reverse Mortgage Flex Lite Rates (setup fee: $995)
6 Month Fixed 4.29% (APR 5.94%)
1 Year Fixed 3.79% (APR 4.61%)
2 Year Fixed 3.94% (APR 4.32%)
3 Year Fixed 3.99% (APR 4.23%)
5 Year Fixed 4.29% (APR 4.40%)
5 Year Adjustable: P + 1.64% (APR 4.24%)
Equitable Bank allows prepayment privileges of mortgage interests subject to the following conditions:
Interest payment – Prepay any of your interest outstanding once per calendar month.
Principal payment – Prepay up to 10% of your principal once per a 12-month period (starting from your initial advance).
After 5 years – Prepay more than 10% of your principal or the entire outstanding balance within 30 days of an interest rate reset date.
After 10 years – Prepay more than 10% of your principal or the entire outstanding balance at any time.
Keep in mind that you could incur prepayment penalties if you exceed your prepayment privileges.
Key Features
On select Equitable Bank mortgage products, you might be able to increase your regular payments once every 12 months, starting on the Interest Adjustment Date or the anniversary of that date.
All Equitable Bank mortgage loans become open at maturity. You can repay them either in part or in full without a prepayment charge before the renewal.
A skim-through of Equitable Bank’s rates shows us what it does best – reverse mortgages. Not only does it offer excellent reverse mortgage rates, but it also lends support through reverse mortgage experts for clarification of doubts.
Let’s learn more about this kind of mortgage:
A reverse mortgage is a type of loan that is obtained against your primary residence in Canada. This financing option provides you with tax-free cash with no required ongoing payments.
Your home will remain yours as long as you live there at least six months a year, you keep it in good condition, and you pay your property taxes on time.
As long as you meet your mortgage obligations, you’ll never owe more than the fair market value of your property. Fair Market Value is the sum that would be paid on the open market, on the relevant date, to purchase the property, supposing no legal claims against the property.
Approval Process
You are eligible for a reverse mortgage if:
You are 55 or older and live in one of the main urban areas of Ontario, Quebec, British Columbia, or Alberta.
Your primary home is your residence (you live there for at least six months of a calendar year).
As joint borrowers, all titleholders of the residence apply (in ON, AB, BC).
The residence is occupied by the owner and is not a second home or cottage.
Your house is detached, semi-detached, a condo, or a townhouse.
Verdict
Equitable Bank has restructured the reverse mortgages game and has built a strong clientele by offering the lowest mortgage rates. Its standard mortgages are an especially appealing option for Millennials because of its digital operational sphere and 24/7 customer service. One of the most appealing things about Equitable is the prepayment privileges it offers its customers.
