Equitable Bank Reverse Mortgage: Flex Lite, Flex and Flex Plus Explained

Equitable's three reverse mortgages

All three need every owner on title to apply, the home to be your principal residence, and an appraised value of at least $250,000. Equitable lends in cities and most large towns in Ontario, Alberta, British Columbia and Quebec.

• Flex Lite: from age 55. Borrow 15% to 40% of your home's value, as one lump sum. A simple option when you know exactly what you need.
• Flex: from age 55. Borrow 15% to 55% of your home's value. You can take a lump sum, add single advances later, and set up scheduled advances.
• Flex Plus: from age 60. Borrow 45% to 59% of your home's value, with the same advance options as Flex. For owners who need a bigger share of their equity.

Where you land in each range depends mostly on the age of the youngest owner and your home's value and location. Younger owners usually start near the low end. Try our reverse mortgage calculator for a rough estimate, then we'll get you Equitable's actual number.

Lump sum, single advances or scheduled advances

This is where Equitable stands out. You don't have to take everything on day one:

• Initial advance: at least $25,000 at closing. Some people take their full amount, for example to pay off an existing mortgage.
• Single advances later: on Flex and Flex Plus, you can leave room and draw more when you need it, at least $5,000 at a time.
• Scheduled advances: on Flex and Flex Plus, regular deposits to your bank account, for up to 20 years. Minimums are $500 a month, $1,500 a quarter, $3,000 every six months or $6,000 a year. Scheduled advances are only available on an adjustable rate term.

Why it matters: interest only builds on money you've actually received. Taking smaller amounts over time can mean a smaller balance down the road than taking it all up front.

The no negative equity guarantee, and its conditions

All three Equitable products include a no negative equity guarantee: you or your estate won't owe more than the fair market value of your home when it's sold.

The guarantee depends on you meeting your obligations: keep your property taxes and home insurance paid and current, keep the home maintained, and keep the mortgage in good standing. It doesn't cover fees and interest that build up after the loan comes due. If taxes are behind today, they can often be paid out from the reverse mortgage at closing.

Equitable Bank vs CHIP: features, not rates

We don't post rates here, because they change often. On features, here's how the two best-known reverse mortgage lenders differ:

Read our full look at CHIP from HomeEquity Bank, and at Home Trust EquityAccess, the newest broker-only option.

Independent legal advice, and how we help

Our role is to put Equitable, CHIP and Home Trust side by side for your home and your age, explain the trade-offs in plain language, and handle the application. Adult children are welcome at our meetings. Every reverse mortgage file is reviewed by Greg Kalanjian. For more background, read our guide to reverse mortgage vs HELOC in Ontario.