Equitable Bank Mortgage Rates & Reviews
Equitable Bank Background
Equitable Bank (TSE: EQB) is a virtual Schedule 1 Canadian bank that was founded in 1970, and has offices in Toronto (Headquarters), Vancouver, Calgary, Halifax, and Montreal. EQ Bank provides a collection of financial services, including: residential mortgages, commercial loans, wealth management solutions, lines of credit, and bank accounts. Equitable Bank has seen rapid growth over the years to become the 9th largest bank in Canada, going from having $17.6 billion in assets and 495 employees in 2015 to over $37 billion in assets and over 900 employees in 2021.
In 2023, Equitable is acquiring Concentra Bank, which includes Wyth Financial and Concentra Trust. As a result of this acquisition, Equitable Bank becomes Canada’s 7th largest bank. EQ Bank is a completely online bank in Canada, meaning they have no branch locations and do not provide customer chequing accounts. Instead, you can get an EQ Bank Card and use your high-interest savings account for everyday banking transactions. Also, Equitable Bank partners with Wise, providing convenient access to competitive exchange rates when making international money transfers. When getting an EQ Bank mortgage, the primary way to do this is through meeting with a mortgage broker.
Equitable Bank Fixed Mortgage Rates
An Equitable Bank fixed rate mortgage reduces the risk of future interest rate movements, by allowing you to keep the same Equitable Bank mortgage rate from the start of your mortgage for your entire term. Besides just protecting you from having to pay more in interest payments if the EQ Bank prime rate rises, the peace of mind of having the same interest rate over your whole term is also very valuable. Because of both of these reasons, EQ Bank fixed rate mortgages are more popular than ARM ones. Out of all the fixed EQ Bank mortgage rates, the most popular product is the 5-year fixed rate. The reason for this is because people value the convenience of not needing to renew their mortgage for 5 years, which has led to mortgage lenders competing the most on 5-year fixed mortgage rates.
| Term | Equitable Rate | Canada's Lowest Rate |
|---|
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Equitable Adjustable Rate Mortgage
An Equitable Bank adjustable rate mortgage is less common than fixed-rate mortgages, as your interest rate will fluctuate throughout your mortgage term. Although the amount of interest you pay will fluctuate with the prime rate, you will pay down the mortgage principal according to your initial amortization schedule.
As a result, monthly payments over your EQ Bank mortgage term will fluctuate with the prime rate. As the interest rate on your mortgage fluctuates, so will how much you pay each month. If the interest rate rises, you will pay a larger monthly mortgage payment. However, if the EQ Bank mortgage rate falls, you will pay a smaller monthly payment.
This makes an adjustable rate mortgage from EQ Bank a good option if you believe that the Bank of Canada overnight interest rate and the Canadian prime rate will average lower than their present value by an amount greater than the current difference between variable and fixed mortgage rates. If the average prime rate over your mortgage term is higher than its current value by an amount greater than the current difference between fixed and variable mortgage rates, you will be better off using a fixed-rate mortgage.
| Term | Equitable Rate | Canada's Lowest Rate |
|---|
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Equitable Bank Prime Rate
Equitable Bank's prime rate is used as the basis for many of its lending products, including EQ Bank mortgages, lines of credit, and HELOCs. The way the prime rate is used is by adding a spread to it, which results in the final interest rate for the product. This spread can be positive, which means it makes the interest rate higher than the prime rate, or negative, making the rate lower than the prime rate.
Current Equitable Bank Prime Rate: 4.95%
Equitable Posted Rates
Equitable Bank’s posted rates are the official rates used when calculating your mortgage break penalty, which is the fee you pay if you want to break or refinance your mortgage early. Posted rates are also the Equitable Bank mortgage rates that are offered to you when there are no promotions and you do not negotiate for a better rate. This means that the mortgage rate on a new mortgage in most cases will be much lower than the same posted rate.
| Term Length | Equitable Posted Rate |
|---|---|
| 1-Year Fixed | 5.34% |
| 2-Year Fixed | 5.14% |
| 3-Year Fixed | 5.14% |
| 4-Year Fixed | 6.34% |
| 5-Year Fixed | 5.09% |
Equitable Mortgage Break Penalty
| Bank or Lender | Adjustable Rate Mortgage | Fixed Rate Mortgage |
|---|---|---|
 | 3 to 5 Months’ Interest* | Greater of 3 Months’ Interest or the IRD amount |
Penalty for a Standard Equitable Bank Adjustable Rate Closed Term Mortgage is as follows:
- 5 months’ interest during the first year of your term.
- 4 months’ interest during the second year of your term.
- 3 months’ interest after the second year of your term.
Penalty for an EQB Evolution Suite Adjustable Rate Closed Term Mortgage is 3 months' interest.
For a standard Equitable Bank fixed rate mortgage, the IRD is the difference between your current mortgage rate and the reference rate.
Reference Rate: If the remaining term is less than or equal to 24 months, the reference rate is the yield for one-year Government of Canada treasury bills.
If the remaining term is more than 24 months, the reference rate is the benchmark for Government of Canada bond yields, specifically bond yields with a comparable term to your remaining mortgage term.
To calculate your mortgage break penalty, the Equitable Bank mortgage prepayment calculator below can make it simpler.
Equitable Bank Mortgage Prepayment Calculator
Are you looking to pay off your mortgage early? Or refinance the terms of your mortgage at a lower interest rate? Maybe you sold your home. Whatever the case, you most likely will have to pay a mortgage break penalty set by your lender. Whatever the situation, our calculator will help you determine the cost to break your mortgage so you can be confident about your mortgage decisions.
What is the remaining balance on your mortgage?
What is the term-length and type of your current mortgage?
What is your current mortgage interest rate?
If applicable, what was the rate discount you received when you signed your current mortgage agreement?
When did your current mortgage start?
Is the Property:
Who is your current mortgage lender?
What is Equitable Bank's current interest rate for a 1-year fixed rate mortgage?
What would you like to do?
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Equitable Bank HELOC
An Equitable Bank HELOC is a great way for you to access your home equity without needing to refinance your EQ Bank mortgage. You are able to pull from your HELOC at any time, which makes it a quick and easy source of cash, especially if you have an unexpected repair or expense that you need to make. Since your HELOC is backed by your home, you will have a much lower interest rate than if you were to get a personal loan or unsecured line of credit. As well, you will have no fees for having a zero balance, and will have no processing fees to use your HELOC. Interest will also only accrue as you use the HELOC, and only on the used balance. There are 3 main ways you can get an EQ Bank HELOC:
- Combine your EQ Bank mortgage with a HELOC,
- Use your EQ Bank HELOC to pay out your existing mortgage, or
- Apply for a HELOC with no mortgage left on your home
To learn more about an Equitable Bank HELOC, speaking with your mortgage broker will be the next steps.
Equitable Bank Reverse Mortgages
As a way to help you retire and help you to access the equity in your home, a reverse home mortgage may be a good option. The way it works is you will be provided with tax-free cash upfront, and will be able to stay in your home. Interest will accrue from the time you get the cash up-front until you leave your home. In order to cover the loan, your home will likely be sold, but not until the last homeowner leaves the home. As long as you meet the ongoing requirements, you will never owe more than the fair market value of your home. To be eligible, you will need to:
- Be 55 years or older,
- Live in a major population centre in the provinces of BC, Ontario, Quebec, or Alberta,
- Occupy your home as a principal residence, and
- Have all homeowners on the deed be part of the reverse mortgage
The amount you will be able to get with a reverse mortgage is based on the age of the borrower(s), along with the current value of your home. You will have multiple options in how you get the loan, with options being both upfront with a single amount, or mixed with a large upfront amount with recurring advances. For more information, you can speak with a representative at 1-800-931-2840.
HomeEquity Bank used to be the only lender offering reverse mortgages. In 2018, EQ Bank entered the reverse mortgage market, and two lenders currently offer reverse mortgages. Reverse mortgage rates are considerably higher than conventional mortgage rates. You can use our reverse mortgage calculator to approximate the size of the reverse mortgage you might qualify for.
Equitable Bank Mortgage Features
Equitable Bank property tax payments
Depending on your mortgage situation, you may be required to pay your property taxes through Equitable Bank as a funding requirement. The way this will work is you will pay property taxes through your monthly mortgage payment, which will then be used to pay your municipality on your behalf. If you are not required to do this in your mortgage contract, you are also able to add this option to any Equitable Bank mortgage. To do this, you will need to give your property tax information to Equitable Bank, who will then allow you to pay through them. One downfall of paying through Equitable Bank is that you will not earn interest on your property tax remittance, however a benefit is it makes paying easier and prevents you from forgetting and owing a late fee.
Change your payment frequency
With an EQ Bank mortgage, you are able to choose which payment frequency works best for you, including monthly, weekly, and bi-weekly payments. This allows you to match your mortgage payments with your pay-days, helping you to budget easier. If you are able to, choosing a more frequent payment schedule will allow you to save money on interest, while letting you also pay off your mortgage faster. This is because you are more constantly reducing your mortgage balance, meaning less interest will accrue over time.
Mortgage portability
If you purchase a new home and sell the home that you have an Equitable Bank mortgage on, you will be able to port your existing mortgage to your new home. The only requirements are that you do this process within 90 days of the sale of your property, with the new property also being in a location that is eligible for an EQ Bank mortgage. If you are porting a mortgage for the same amount or more, your mortgage break penalty will be completely waived, and you will be reimbursed after the mortgage is closed. If you decide to port a smaller mortgage balance, you will be reimbursed for some of the mortgage break penalties, based on the difference in mortgage size.
Contacting Equitable Bank
Although EQ Bank operates as a branchless bank online while also offering mortgages through mortgage brokers, there are still many ways to contact an EQ Bank mortgage representative. For existing mortgage holders, you can contact 1-888-334-3313, or email customerservice@eqbank.ca to get help with any problems. As well, EQ Bank has 5 offices across Canada, with their addresses and phone numbers below:
| Equitable Bank Office Locations | ||
|---|---|---|
| Toronto | 30 St. Clair Avenue West, Suite 700 | 1-866-407-0004 |
| Calgary | 906 12th Avenue SW, Suite 700 | 1-866-940-1201 |
| Vancouver | 777 Hornby Street, Suite 1240 | 1-866-505-6886 |
| Montreal | 1411 Peel Street, Suite 501 | 1-866-407-0004 |
| Halifax | 1959 Upper Water Street, Suite 1300 | 1-902-482-4797 |
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
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- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.