Compare Equitable Bank Mortgage Rates in Canada
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Compare Equitable Bank Mortgage Rates in Canada
Equitable Bank is a Canadian bank that offers personal, residential, and commercial real estate lending, through its direct banking brand EQ Bank. If you’re looking to compare mortgages and mortgage products from EQ Bank, look no further. This post will help you see where EQ Bank stacks up in its rate offerings and products compared to other major Canadian banks.
Key Highlights
- Equitable Bank, or EQ Bank as they are also known, is a direct bank that specializes in personal banking and consumer lending for Canadians.
- Equitable Bank is the 8th-largest Schedule I bank in Canada, and is considered an A and B Lender.
- EQ Bank mortgage rates are competitive among other big banks and lenders. Your personal financial situation will often determine the lowest rate you qualify for.
Compare Equitable Bank Mortgage Rates
All of Equitable Bank’s mortgage rates can be found on their website. However, if you want to compare these to hundreds of other lenders instantly, and find the best rate possible, check out our mortgage rate comparison. Finding the best rate possible for your situation will help you save money over the lifetime of your loan, and make borrowing a whole lot easier. Here’s a breakdown of how Equitable Bank’s rates stack up against other lenders in Canada.
Top 5 Big
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The top 5 big bank rates all in one easy-to-view table. See their rates then beat their rates (or get $500) with nesto’s low rate guarantee.
*Toronto rates
How to Compare Bank Rates from Big Banks
Although Equitable Bank is not considered one of Canada’s Big Five Banks, they are a Schedule I bank. This means that they’re a federally-regulated financial institution, and would be considered an A-lender, or conventional lender. When comparing rates from larger lenders like Equitable, or the Big Five, you should focus on finding the best rate possible. The easiest way to do this is to compare the best rates simultaneously.
As part of our low rate guarantee, if you find a rate from Equitable Bank or another conventional lender that you like, nesto will guarantee to match or beat it (or you could get $500).
Equitable Bank Overview & Stock Information
Branding themselves as ‘Canada’s Challenger Bank’, Equitable Bank is the eighth-largest Schedule I bank in the country, with over $45 billion in assets. Founded in 1970 as The Equitable Trust Company, Equitable Bank is now known as a direct bank, dealing primarily with a range of consumer, personal, and commercial solutions for their clients.
Stock information
- Listed on the Toronto Stock Exchange: EQB.TO
Equitable Bank Prime Rate
As of Wednesday, November 29, 2023, Equitable Bank’s prime rate is
Equitable Bank 5-Year Fixed and Variable Rate History
Below is a breakdown of Equitable Bank’s 5-year rates over the last couple of years. In general, Equitable Bank’s rates have followed the trends of other conventional A-lenders over the last few years. Rates are expected to rise in line with the Bank of Canada’s interest rate decisions.
We don’t track historical rates at EQ Bank. 5-year mortgage rates are the most popular rates to choose from in Canada, with people switching between fixed or variable depending on market trends. Analyzing the chart from Bank of Canada below can help you choose between a fixed or variable 5-year mortgage rate in today’s market.
Bank of Canada Policy & Prime Rate Changes
| Date of Rate Change | Key Overnight Target Rate (%) | Change (%) | Bank Prime Rate |
|---|---|---|---|
| June 2, 2010 | 0.30% | 0.25% | 2.50% |
| July 21, 2010 | 0.55% | 0.25% | 2.75% |
| September 9, 2010 | 0.80% | 0.25% | 3.00% |
| January 28, 2015 | 0.65% | -0.15% | 2.85% |
| July 16, 2015 | 0.50% | -0.15% | 2.70% |
| July 13, 2017 | 0.75% | 0.25% | 2.95% |
| September 7, 2017 | 1.00% | 0.25% | 3.20% |
| January 18, 2018 | 1.25% | 0.25% | 3.45% |
| July 12, 2018 | 1.50% | 0.25% | 3.70% |
| October 25, 2018 | 1.75% | 0.25% | 3.95% |
| March 5, 2020 | 1.25% | -0.50% | 3.45% |
| March 17, 2020 | 0.75% | -0.50% | 2.95% |
| March 30, 2020 | 0.25% | -0.50% | 2.45% |
| March 3, 2022 | 0.50% | 0.25% | 2.70% |
| April 14, 2022 | 1.00% | 0.50% | 3.20% |
| June 2, 2022 | 1.50% | 0.50% | 3.70% |
| July 14, 2022 | 2.50% | 1.00% | 4.70% |
| September 7, 2022 | 3.25% | 0.75% | 5.45% |
| October 26, 2022 | 3.75% | 0.50% | 5.95% |
| December 7, 2022 | 4.25% | 0.50% | 6.45% |
| January 25, 2023 | 4.50% | 0.25% | 6.70% |
| March 8, 2023 | 4.50% | 0.00% | 6.70% |
| April 12, 2023 | 4.50% | 0.00% | 6.70% |
| June 7, 2023 | 4.75% | 0.25% | 6.95% |
| July 12, 2023 | 5.00% | 0.25% | 7.20% |
| September 6, 2023 | 5.00% | 0.00% | 7.20% |
The Bank of Canada (BoC) will deliberate on the Key Overnight Target rate twice every quarter. Generally, all lenders will follow suit to keep their prime rates in line with the country’s Big Six chartered banks. Find below the most recent changes to the baseline, which impacted the spreads to the Big Banks Prime Rates.
You can find more details about the Key Overnight Target Rate and an explainer from the Bank of Canada (BoC) if you want to learn more about this topic.
Equitable Bank Mortgage Products
Equitable Bank has a reasonable range of mortgage products for consumer borrowers, including fixed and adjustable rate mortgages, plus a number of reverse mortgages. Additionally, Equitable Bank offers several prime mortgage solutions for alternative income situations, such as individuals who are salaried with a commission and those who are self-employed. These fall under Equitable Bank’s EQB Evolution Suite®.
EQB Evolution Suite®
Equitable’s EQB Evolution Suite® encompasses a range of prime mortgage solutions that appeal to a wide range of borrowers, from salaried workers to those who earn commission, are self-employed, and investors looking to acquire rental properties, newcomers to Canada, and those purchasing second or vacation homes.
Reverse Mortgage
A reverse mortgage lets you convert some of the equity in your home into cash, without having to sell your home. Equitable’s Reverse Mortgage offerings allow you to borrow up to 59% of your home’s value if you reside in Ontario, Quebec, British Columbia, or Alberta.
Equitable Bank Home Equity Line of Credit (HELOC)
Equitable Bank also offers a popular lending product known as a HELOC. A Home Equity Line of Credit is a revolving line of credit that lets you take out money against your home’s equity. HELOCs accrue interest only on money you spend, a lot like other revolving lines of credit, or credit cards. Equitable Bank’s HELOC is similar to most conventional HELOCs, which are a common way to borrow against your home’s equity.
Equitable’s HELOC has several options for people looking to unlock equity in their residential property, such as combining the HELOC with your first mortgage, or applying for the Equitable Bank HELOC if you have an existing mortgage with them. You can also use funds from your Equitable Bank HELOC to pay out your existing mortgage if you already have one elsewhere.
Equitable Bank Mortgage Payment Increases
Mortgage prepayment defines a situation where a borrower pays off some, or all of their mortgage early. Each lender has its own allowances for prepayment, and its own penalties for breaking your mortgage early through prepayment.
Equitable Bank provides prepayment privileges on all their mortgage products, including making a lump sum payment up to a certain percent of your original principal balance, or by increasing your regular payments by a certain amount. These privileges depend on the type of mortgage you have with Equitable Bank and the specifics of your mortgage terms and conditions. If you have a closed-term mortgage with Equitable Bank and you prepay your mortgage loan in full, or make a lump sum payment to reduce your principal amount but exceeds your prepayment privilege, you will have to pay an additional prepayment charge, for which Equitable has a prepayment charge calculator.
Equitable Bank Annual Mortgage Prepayment
Equitable Bank offers a fairly competitive annual mortgage prepayment amount of 15-20%, depending on the type of mortgage you have with them. On their website, the bank recommends checking your mortgage loan documents for your exact prepayment terms, or by calling them directly at 1-888-334-3313.
| Canadian Bank Closed Mortgage Prepayment Amounts | |
|---|---|
| RBC | 10% |
| National Bank | 10% |
| TD Bank | 15% |
| Scotiabank | 15% |
| BMO | 20% |
| HSBC | 20% |
| Equitable Bank | 15-20% |
Renewal Process with Big Banks
If you already have a mortgage with Equitable Bank, you can speak to them directly about your mortgage renewal, at 1-888-334-3313 or by emailing renewals@eqbank.ca. Generally, the process will be that as your mortgage reaches the expiry of its term, your bank will send you a letter of renewal that contains the terms, conditions, and rate for your renewal.
However, it’s worth noting that you don’t have to stick with the same lender when it comes to renewal time. This is a good moment to check around for better rates with other lenders too. If you want to renew your Equitable Bank mortgage with another lender, explore mortgage rates first, and make sure you’re getting the best one possible.
At nesto, we can help you find the best rate on your mortgage. Plus, we also lend directly. To learn more about renewing your Equitable Bank mortgage with nesto, check out our guide to the renewal process in Canada.
Frequently Asked Questions (FAQ)
Here are the most commonly asked questions about Equitable Bank’s mortgages and rates.
Are Equitable Bank rates lower than other big banks?
Equitable’s fixed and variable rates are generally lower than the big banks. When comparing rates, it’s important to keep in mind that some larger banks will have different criteria and flexibility around negotiating rates. It ultimately depends on your individual application and the level of risk you bring to the table, from a lender’s perspective.
Are Equitable Bank mortgages portable?
According to Equitable Bank, depending on your mortgage product, you may be able to move your mortgage to a new home and transfer the existing balance, annual interest rate, and term (i.e. a straight port), or increase your loan balance (i.e. port and increase) with a new blended rate.
Is Equitable Bank an A or B lender?
Equitable Bank is a Schedule I lender in Canada, meaning that it is federally regulated. However, although it is a large independent lender, it is considered a B Lender, since it provides a lower barrier of entry to qualification but with higher rates compared to the larger banks.
Final Thoughts
Equitable Bank is a large independent lender in Canada and fairly popular for residential mortgages, particularly for individuals who may have different needs compared to other conventional lender clients. The bank provides reasonable rates and a range of common mortgage products, and their prepayment options are fair in comparison with other banks. If you’re thinking of getting a mortgage soon, nesto can help you compare the best rates available and we also lend directly. If you’re with Equitable Bank and looking to renew with a different lender, speak to our team today, and we’ll help you get started.
