Introduction to Equitable Bank Mortgages
Equitable Bank is a leading Canadian financial institution that offers a wide range of mortgage solutions for consumers and businesses nationwide. Founded in 1970 and headquartered in Toronto, Equitable Bank has grown to become Canada’s 9th largest independent Schedule I bank, with over $45 billion in assets under management.
Equitable Bank provides mortgage solutions, such as conventional mortgages, refinances, reverse mortgages, and more. It is known for its specialized products and flexible features.
In this comprehensive guide, we will provide an in-depth look at Equitable Bank’s mortgage offerings for 2024, including:
- Current mortgage rates for fixed and adjustable-rate mortgages
- An overview of Equitable’s mortgage products
- Key features of Equitable mortgages
- The application process and qualifications
- How Equitable compares to other top mortgage lenders in Canada
Whether you are looking to purchase a new home, refinance your mortgage, or simply want to learn more about Equitable Bank, this guide covers everything you need to know about getting a mortgage with this leading Canadian lender.
Equitable Bank Mortgage Rates
Equitable Bank offers competitive fixed and adjustable-rate mortgages. Here is an overview of their current mortgage rates compared to the lowest rates available in Canada as of September 2024.
Equitable Bank Fixed-Rate Mortgages
With a fixed-rate mortgage, your interest rate stays the same for the entire term, generally 1-5 years. This allows you to lock in a rate and provides payment stability.
| Term | Equitable Rate | Lowest Rate in Canada |
|---|---|---|
| 1-Year Fixed | 5.89% | 5.84% |
| 2-Year Fixed | 5.64% | 4.89% |
| 3-Year Fixed | 5.54% | 4.29% |
| 4-Year Fixed | 6.74% | 4.29% |
| 5-Year Fixed | 5.44% | 4.14% |
*Rates are for insured mortgages in Ontario with less than 20% down payment. [Source]
As you can see, Equitable Bank offers competitive rates compared to the lowest rates in Canada. Their 5-year fixed rate is slightly higher than the lowest rate, but overall very reasonable.
Equitable Bank Adjustable Rate Mortgages
Equitable Bank offers 5-year adjustable-rate mortgages, with interest rates that float based on the prime rate. As of September 2024, Equitable’s prime rate is 6.45%. This benchmark is used to price various lending products, including mortgages.
Your monthly mortgage payments will fluctuate as interest rates fluctuate. This allows you to take advantage of decreases in interest rates but also exposes you to rate increases.
| Term | Equitable Rate | Lowest Rate in Canada |
|---|---|---|
| 5-Year | 6.95% | 5.30% |
Equitable’s 5-year ARM is competitive with the top rates in the market. The flexibility of an ARM may be appealing if you believe prime rates will fall.
What are Equitable Bank Mortgage Products?
In addition to fixed and adjustable rate mortgages, Equitable Bank offers a wide range of specialty mortgage solutions for unique borrowing needs.
Equitable Reverse Mortgages
Reverse mortgages from Equitable Bank allow homeowners over 55 to borrow against the equity built up in their homes. No ongoing monthly repayments are required.
The full loan plus all accrued interest is only due when the homeowner sells the home or passes away. This allows seniors to access extra retirement income while remaining in their current residence.
Read more: Equitable Bank Reverse Mortgage Reviews
Equitable Bank Short-Term Mortgages
In addition to standard longer-term mortgages, Equitable Bank offers short-term 6-month and 1-year mortgage options. These provide flexibility in certain situations, for example, if you expect to sell your home within a short time frame.
However, short-term mortgages typically come with higher interest rates than longer-term mortgages.
EQB Evolution Suite
The EQB Evolution Suite® from Equitable Bank offers specialized mortgage lending solutions for borrowers who may not qualify through traditional programs.
This includes new immigrants to Canada, individuals with past credit challenges, self-employed applicants, real estate investors, and others with unique income situations.
The Evolution Suite provides more flexible underwriting and competitive rates tailored to each borrower’s specifics.
| Term | Equitable Rate |
|---|---|
| 1-Year Fixed | 7.44% |
| 2-Year Fixed | 6.44% |
| 3-Year Fixed | 4.79% |
| 4-Year Fixed | 5.69% |
| 5-Year Fixed | 5.69% |
| 5-Year Variable | 5.45% (P – 1.00%) |
Equitable Bank Home Equity Lines of Credit (HELOCs)
Equitable Bank offers home equity lines of credit secured against a property’s value. A HELOC can be set up with an Equitable Bank mortgage or as a stand-alone credit product.
You only pay interest on the outstanding HELOC balance, providing access to a flexible source of low-cost financing for renovations, investments, and more.
Equitable Bank Commercial Mortgages
For business owners, Equitable Bank provides commercial mortgages for properties such as apartment buildings, retail spaces, hotels, and offices.
Both fixed and adjustable rate terms are offered, with highly competitive rates and options ranging from 6 months to 10 years. For commercial borrowers, there is also potential for high-ratio financing up to 85% loan-to-value.
Renewing and Refinancing with Equitable
When your term expires, you have a couple of options:
Renewal – Sign up for a new term with Equitable at their renewal rates. No mortgage approvals are required.
Refinancing – Pay out your Equitable mortgage in full and refinance it with new terms, lender, etc. This requires full approval.
Most choose to renew as it is the simplest option. However, refinancing can allow you to take advantage of better rates, cash out equity, or switch lenders. Make sure to review renewal vs. refinance to understand the implications.
Your mortgage broker can walk you through the renewal or refinancing process and help you get the best rates.
What are Key Features of Equitable Mortgages?
Payment Frequency
Equitable Bank allows you to choose to make mortgage payments monthly, bi-weekly, weekly or semi-monthly. Opting for bi-weekly or weekly payments means you end up making the equivalent of an extra monthly payment each year.
This accelerates the payment down of the mortgage principal and can save a significant amount of interest costs over the full term of the mortgage.
Portability Features
Mortgage portability with Equitable Bank lets you transfer your existing mortgage to a new property without penalty, providing convenience and flexibility.
To qualify, you must sell your current property and close the new purchase within 90 days. The new property must also meet eligibility criteria for an Equitable Bank mortgage. You avoid prepayment penalties and fees by porting the mortgage instead of breaking it.
Prepayment Options
Equitable Bank permits prepaying up to 15-20% of the original mortgage principal annually without penalty, depending on your specific mortgage product.
Double-Up: Make up to 1 additional payment per year on top of regular payment
Skip-a-Payment: Skip a payment up to once per calendar year
Having an assumable mortgage and payment flexibility provides more options when moving or managing cash flow.
This allows you the flexibility to make lump sum payments on your mortgage, allowing you to pay the balance down faster and save on interest costs over the term.
Mortgage Conversion
When your mortgage term comes up for renewal, Equitable Bank allows converting between fixed and adjustable interest rate terms. This provides flexibility to lock-in fixed rates or float with the prime rate depending on your forecast of future rates and personal situation. Converting may require updated documentation and a credit check.
Property Tax Payments
Equitable mortgages allow borrowers to pay property taxes as part of their mortgage payment. This funds a property tax account held by the lender to make annual tax payments on your behalf.
Cashback Offers
Equitable frequently offers cashback incentives on new mortgages to help with expenses. These range from a few hundred to several thousand dollars back.
Breaking Mortgage Early Penalty
Ending your term before maturity is called ‘breaking’ your mortgage. This incurs prepayment penalties with any lender, including Equitable.
Going beyond prepayment allowances triggers break fees calculated as:
Fixed Rate – Greater of 3 months interest or Interest Rate Differential (IRD)
Variable Rate – 3 to 5 months interest
Having prepayment options helps avoid full break penalties for small lump sums or increased payments.
How to qualify for an Equitable Mortgage?
Equitable Bank looks at a variety of factors when determining mortgage eligibility. While specific program criteria differ, here are some key qualification guidelines:
- Minimum credit score: 650 or higher in most cases
- Down Payment: At least 5% down is required for CMHC-insured mortgages
- Debt Service Ratio (GDS and TDS): Ideally, 38% and 42% or lower
Debt ratios may be flexible for strong applications. Having a co-signer with good credit can also improve qualifications.
Equitable offers alternative lending solutions through its Evolution program for those not qualifying for traditional mortgages.
Getting pre-approved can help you determine if you qualify for the mortgage amount you need. Speak to a mortgage broker to start the process.
How Equitable Mortgages Compare to Other Lenders?
While Equitable Bank offers solid mortgage options, comparing them against big banks and other alternative mortgage lenders is still useful.
Equitable vs Big 6 Banks
Equitable cannot match Canada’s largest banks’ total scope and scale. However, they compete aggressively on mortgage rates while offering more flexible programs for those with unique borrowing needs.
| Equitable Bank | Big 6 Banks |
|---|---|
| Competitive rates | Higher rates on average |
| Alternative lending options | Strict conventional qualifying |
| Smaller range of products | Full suite of financial products |
| Broker model | In-branch and online applications |
So, Equitable provides better rates and borrowing flexibility compared to big banks but less convenience and brand recognition.
Equitable vs Online Lenders
Newer digital lenders compete directly with Equitable in terms of rates, speed, and service. However, Equitable’s longer history and wider product suite give them an advantage.
For example, Equitable offers reverse mortgages and commercial lending, which most online lenders do not. And the broker model provides local human expertise that some appreciate over pure online lending.
Equitable generally provides competitive rates versus purely online alternatives while offering a combination of digital convenience and personal service.
Is an Equitable Bank Mortgage Right for You?
Here are some factors to consider when deciding if Equitable Bank could be the right lender for your mortgage:
You want specialized options – Equitable Bank has unique products like reverse mortgages and newcomer programs that big banks may not.
You value customization – Through an experienced broker, Equitable can tailor solutions specific to your needs.
You prefer a more consultative process – Brokers may take more time to understand your full financial picture.
You have unique borrowing needs – Alternative income programs available for self-employed, rural properties, vacation homes etc.
You want rate aggressiveness – Equitable Bank consistently offers very competitive below-market mortgage rates.
Equitable Bank may not be the ideal fit if you desire straightforward approval with a big bank. However, Equitable Bank is worth strong consideration for borrowers who want competitive rates alongside mortgage flexibility and customization.
How to Apply for an Equitable Mortgage?
Equitable Bank works primarily through independent mortgage brokers. To start the application process, you must find and contact a mortgage broker, who will be your main point of contact throughout the process.
Documents Needed
Your mortgage broker will advise you on documents needed from each applicant for the mortgage application, such as:
- Identification (driver’s license, passport, etc)
- Income verification (pay stubs, Notice of Assessment, etc.)
- Down payment evidence (bank statements, deposit receipts, gift letter if applicable)
- Credit report
Additional documents may be required in certain situations. Your broker will ensure you have everything needed for underwriting.
Timeline for Approval and Closing
Depending on your application and circumstances, mortgage approval times can range from a few days to a few weeks. Some general timelines:
- Application submission to approval: 5-10 business days on average
- Conditional approval to firm approval: 2-3 weeks on average
- Firm approval to closing: As quick as 1 week, but allow 2-3 weeks to be safe
Communicate your desired closing date with your broker so they can coordinate appropriately with Equitable. Rush closings can sometimes be accommodated for a fee.
Get started with a broker early in your home-buying process to ensure no delays.
Connecting With a Mortgage Broker
There are a few ways to find a mortgage broker to work with:
- Equitable Bank website: They provide a broker locator tool to search for brokers near you.
- Referrals: Ask friends, family, realtors or other professionals for broker recommendations.
- Online searches: Search for top mortgage brokers in your local area. Look at reviews and compare.
Once you have identified one or more brokers, contact them for initial consultations. Be prepared to provide details on income, desired loan amount, property value, debts, credit, and overall goals. The broker will help assess your situation and provide mortgage recommendations.
The Bottom Line
Getting a new mortgage is one of the biggest financial decisions Canadians make. It is crucial to do your research on the best rates, options, and lenders for your specific needs.
Equitable Bank is a top alternative lender known for great service, flexibility, and competitive pricing. If you’re looking for the best overall mortgage, we recommend adding them to your comparison shopping list.
To recap or get started on finding your best mortgage option, connect with our team of experts at Best Mortgage Online. We offer complimentary, no-obligation consultations to evaluate your situation and present smart mortgage strategies that save you money. Let us help guide you in making the most of your next mortgage.
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FAQs on Equitable Mortgages
What is the EQB Evolution Suite from Equitable?
The EQB Evolution Suite provides alternative lending solutions for new Canadians, self-employed, and those with past credit difficulties.
Does Equitable offer commercial mortgages?
Yes, Equitable Bank provides both fixed and adjustable-rate commercial mortgages with competitive terms and flexible lending criteria.
Can I transfer my Equitable mortgage to a new property?
Yes, Equitable allows mortgage portability in qualifying situations with no penalty. Some conditions apply around timing and new property.
How long does it take to close an Equitable mortgage?
Standard closing times range from 1-3 weeks after conditional approval. Quick closings under a week may be possible in certain situations.
Can I make extra payments on my Equitable mortgage?
Yes, you can prepay up to 15-20% of the original principal annually without penalty, depending on the mortgage type.
Can I get a mortgage pre-approval from Equitable?
Yes, your mortgage broker can help you get a pre-approval. This locks in a rate while confirming you qualify for the mortgage amount.
Does Equitable Bank have good mortgage reviews?
Yes, Equitable Bank scores well on Trustpilot, BBB, Google, and Reddit. Customers praise competitive rates, flexibility, and quality service.
Does Equitable Bank have an online mortgage application?
No, Equitable Bank works through mortgage brokers. You need to contact a broker to start the application process.