Rate news · September 2026
Reverse Mortgage Rates Are Rising: CHIP Up 0.55% as Bond Yields Hit a Two-Year High (September 2026)
General information for Canadian homeowners, not personal financial, legal, or tax advice. Rates and lender details verified as of September 17, 2026.
Key takeaways
- HomeEquity Bank raised the advertised 5-year rate on its CHIP Reverse Mortgage by 0.55 points, from 6.39% to 6.94%, effective August 31, 2026 (chip.ca rate page). That is its highest advertised 5-year rate since July 2024.
- Two of the other three lenders did not follow. Equitable Bank still posts 6.23% and Bloom 6.33% on the 5-year term, so the gap between the lowest and highest posted rates widened from 0.16 points in July to 0.71 points as of September 17 (Equitable Bank, Bloom).
- The Bank of Canada did not move. It held its policy rate at 2.25% on September 2 but noted that "long-term bond yields have moved up globally, including in Canada" (Bank of Canada). Fixed reverse mortgage rates follow those bond yields, not the policy rate.
- The Government of Canada 5-year bond yield reached 3.65% on September 11, its highest level since May 2024, up from 3.03% in early July (Bank of Canada bond yields). The United States Federal Reserve then raised its own rate on September 16, its first increase since July 2023 (Federal Reserve).
- On $150,000 with no payments made, the 0.55-point increase adds about $850 of interest in the first year and about $5,500 to the balance after five years (this page's own math, assumptions stated below).
- One lender is advertising a limited-time 4.99% one-year fixed rate (5.901% APR) until September 30, 2026 (Equitable Bank). A one-year term resets after twelve months at whatever that lender offers then, so it fits some plans and not others. A mortgage broker compares all four lenders on your actual home at no cost to you.
Reverse mortgage rates in Canada started rising in September 2026: HomeEquity Bank raised the advertised 5-year rate on its CHIP Reverse Mortgage by 0.55 points to 6.94% on August 31, while Canada’s 5-year bond yield climbed to its highest level since May 2024.
Most homeowners who have been weighing a reverse mortgage want to know one thing when rates move: whether to act now or wait.
The challenge is not the direction of one number. It is that Canada’s four reverse mortgage lenders are no longer moving together. One raised its advertised 5-year rate by more than half a point at the end of August. Two others held their 5-year rates where they were in July, and one of those is advertising a one-year rate below 5% until September 30.
Behind those moves sit forces a homeowner never sees on a rate page. The United States Federal Reserve raised its rate on September 16 for the first time since 2023. Government of Canada bond yields, which set the cost of the money lenders lend, climbed to a two-year high.
This page shows exactly what changed, why it changed while the Bank of Canada stood still, where today’s rates sit against the last seven years, and what the difference costs on a real balance.
What happened to reverse mortgage rates in September 2026?
On August 31, 2026, HomeEquity Bank changed the rates it advertises for new CHIP Reverse Mortgage clients. The 5-year fixed rate, the term most people compare, went from 6.39% to 6.94%. That is an increase of 0.55 percentage points in one step.
The other three lenders did not follow, at least not yet. Here is where every lender’s advertised 5-year fixed rate stands, compared with the last time this site verified them.
| Lender | July 20, 2026 | September 17, 2026 | Change |
|---|---|---|---|
| HomeEquity Bank (CHIP) | 6.39% | 6.94% (from Aug 31) | +0.55 |
| Bloom | 6.33% | 6.33% | no change |
| Equitable Bank (Flex Lite) | 6.23% | 6.23% | no change |
| Home Trust (EquityAccess) | 6.23% | 6.23% (July figure; see note) | not re-verified |
Home Trust’s public website could not be reached for re-verification on September 17, so its row carries the last figure verified here. Home Trust’s reverse mortgage is offered only through mortgage brokers, and its current pricing is confirmed on every mortgage a broker arranges.
The gap between lenders is now more than four times wider
In July, all four lenders were within 0.16 points of each other. Today the distance between the lowest and highest advertised 5-year rate is 0.71 points.
That widening is the real news for a homeowner. When every lender charges nearly the same, the choice of lender barely moves the cost. When one lender is 0.71 points above another on the same term, the choice of lender is worth thousands of dollars over a single five-year term. The worked figures are below.
Two smaller moves belong in the record too. Bloom raised the rate on its lifetime-fixed product from 6.54% to 6.69%, a 0.15-point increase, while holding its 5-year term steady. And HomeEquity Bank’s separate rate schedule for existing CHIP clients whose term is ending listed 7.54% on the 5-year term as of September 17, 2026, 0.60 points above the rate it advertises to new clients. CHIP’s rates in full explains that two-schedule structure.
Why did CHIP raise its rate when the Bank of Canada did not move?
Because fixed reverse mortgage rates do not come from the Bank of Canada. They come from the bond market.
The Bank of Canada held its policy rate at 2.25% on September 2, its seventh hold in a row. That rate drives prime, and prime drives variable rates. It has very little to do with what a lender charges you for money fixed for five years.
A fixed-rate lender has to raise the money it lends, mostly by borrowing it for a matching stretch of time. The price of that borrowing follows the yield on Government of Canada bonds of the same length. When the 5-year bond yield rises, the lender’s cost rises with it, and the fixed rate it advertises follows within weeks.
What the bond market did this summer
The Government of Canada 5-year bond yield sat near 3.03% in early July 2026. By August 31, the day CHIP’s new rate took effect, it had climbed to 3.33%. By September 11 it reached 3.65%, its highest level since May 2024.
That is a rise of more than 0.6 points in about ten weeks. Canadian lenders raised regular fixed mortgage rates through August in response, by 0.10 to 0.20 points at a time, as Canadian Mortgage Trends reported on August 21. A reverse mortgage lender pays a higher price for its money than a regular mortgage lender does, so the same bond move tends to show up as a larger step in reverse mortgage rates.
The Bank of Canada described the same thing in its own words on September 2: “Financial conditions have tightened since July. Long-term bond yields have moved up globally, including in Canada.”
Where the United States comes in
Canadian bond yields follow United States bond yields closely, because investors can put their money in either market. Through August, yields in the United States rose on high oil prices, heavy government borrowing and stubborn inflation, and Canadian yields were pulled up with them.
Then, on September 16, the United States Federal Reserve raised its target rate by a quarter point to a range of 3.75% to 4%, with a unanimous vote. It was the Fed’s first increase since July 2023, and its officials forecast another increase before the end of the year.
So the chain runs like this: United States inflation pushes United States bond yields up, Canadian bond yields follow, Canadian lenders pay more for five-year money, and the fixed rate advertised to a homeowner in Ontario goes up. The Bank of Canada does not have to touch anything for that chain to complete.
The Bank of Canada is not sitting still either
The Bank held in September, but its tone changed. In the minutes of that meeting, published September 16, its governing council said that if higher energy prices spill over into other prices, “it could require a monetary policy response.” Canadian inflation has been running around 3% for months, above the Bank’s 2% target.
That matters for variable-rate reverse mortgages, which move with prime. The next two decision dates are October 28 and December 9, 2026.
Where does 6.94% sit against the last seven years?
A rate move only means something next to history, and this site keeps a dated record of CHIP’s advertised 5-year rate back to July 2019. The full chart and every source link are on reverse mortgage rates in Canada.
The short version:
- The low was 4.59%, from October 2020 to early 2021.
- The peak was 8.24%, on July 18, 2023, after a climb of more than three and a half points in fifteen months.
- The rate eased for three years after that: 6.99% through mid-2024, 6.69% from August 2024, 6.64% from October 2025, and 6.39% from July 2026.
- 6.94%, the rate from August 31, 2026, is the highest advertised 5-year CHIP rate since July 2024, when it last stood at 6.99%.
Read the calibration carefully. A 0.55-point increase is real money, and the figures below show it. It is also a fraction of the 3.65-point climb of 2022 and 2023. One step up is not a repeat of that climb, and this page makes no forecast that it becomes one.
What does a 0.55-point increase cost?
Take $150,000 borrowed against an Ontario home, interest worked out twice a year and added to the balance, no payments made. That is the standard structure of a reverse mortgage, and the same assumptions used across this site.
| Advertised 5-year rate | Interest added in year one | Balance after five years |
|---|---|---|
| 6.39% (CHIP, July 2026) | about $9,700 | about $205,400 |
| 6.94% (CHIP, from August 31, 2026) | about $10,600 | about $211,000 |
| Difference | about $850 | about $5,500 |
Now run the widened gap between lenders through the same math. At 6.23%, the lowest advertised 5-year rate in September 2026, the same $150,000 grows to about $203,900 in five years. Against 6.94%, that is a difference of about $7,100 over one term, from the choice of lender alone.
You’re charged interest only on the money you actually take, not on the maximum you’re approved for. So a homeowner who takes $100,000 instead of $150,000 cuts every figure in that table by a third, at any rate.
See what the new rates mean on your own home
A free estimate compares what all four reverse mortgage lenders in Canada would offer for your age and home this month, the rate, the fees and the amount, in writing. No cost. No credit check. No sales pressure.
Get my free estimateIs there a way to get below the posted rates right now?
Yes, in two ways, and each one needs a plain explanation.
A limited-time special, until September 30
Equitable Bank is advertising a one-year fixed rate of 4.99% (5.901% APR) on its Flex and Flex Lite reverse mortgages. The offer ends September 30, 2026. It is the lowest advertised reverse mortgage rate in Canada today, and it is almost two full points below the 6.94% CHIP now advertises on a 5-year term.
On $150,000, one year at 4.99% adds about $7,600 of interest. One year at 6.94% adds about $10,600. That is roughly $3,000 less interest in the first year.
Here is the part the advertisement does not dwell on. A one-year term ends after twelve months, and at that point the rate resets to whatever that lender offers on that day. A reverse mortgage cannot be moved to another lender penalty-free just because a term has ended, because the early-payout charge runs from the date the money was first advanced. So the one-year special is a very good first year followed by an unknown second year.
For a homeowner planning to sell within a year or two, or one whose broker will be pricing the reset against every lender when it comes, that trade can make sense. For a homeowner who wants the same rate for five years and no surprises, a 5-year term at one of the two lenders still posting 6.23% and 6.33% may cost less over the full stretch.
Neither answer is right for everyone. That is the point of getting the comparison done rather than picking the lowest number on a page. The deadline is September 30, and an assessment takes a few days, so the time to ask is this week.
The pricing that never appears on a rate page
Lenders also give mortgage brokers specials that they do not publish anywhere. When lenders are competing for your mortgage, the rate and the set-up fee can both come in below the public figures.
A broker is paid by the lender after the mortgage closes, never by you. So the comparison, including the unpublished pricing, costs you nothing.
Free Guide:The Canadian Reverse Mortgage Guide
- ✓How much tax-free cash you could unlock — and what moves the number
- ✓The real costs, rates, and fees — nothing buried in fine print
- ✓How the lenders (CHIP, Equitable Bank, Home Trust, Bloom) really compare
- ✓When a reverse mortgage is the wrong choice
Simply enter your info below and a PDF copy will instantly be sent right to your inbox.
What should you do if you were already thinking about a reverse mortgage?
Rate news tends to produce two wrong reactions: rushing because a number went up, and freezing because it might go up more. Neither is a plan. Here is what actually changes for three kinds of homeowner.
- You were already deciding this fall. Get the four-lender comparison done now, in writing. Two lenders have not moved, one special expires September 30, and the gap between lenders is the widest it has been this year. Which lender fits you has rarely mattered more.
- You already have a reverse mortgage and a term ends in the next year. Your rate does not change until the reset. The reset is where a rising market lands, so the comparison should start about six months before that date, not after the renewal letter arrives. Reverse mortgage renewals in Canada explains what the letter says and what your options are.
- You were only curious. Nothing about this month makes a reverse mortgage right for someone it was wrong for in July. If the pros and cons did not add up before, a half-point move does not change that.
A reverse mortgage is not always the right answer. Sometimes a home equity line of credit, a regular refinance, or a smaller amount taken later costs less. A broker who arranges all of those products will say so, and the comparison is free either way.
Where could reverse mortgage rates go next?
Nobody predicts rates reliably, professionals included, so this page does not try. What can be stated is the calendar and the signals.
The Federal Reserve has signalled another increase before year end. The Bank of Canada has said a response could be needed if energy prices keep spreading into other prices. Bond yields were still near their high in mid-September.
Against that, two of the four Canadian reverse mortgage lenders have chosen, so far, to hold their 5-year rates and compete for business. If they hold, the widened gap is a homeowner’s opportunity. If they follow CHIP, the window narrows.
Either way, the mechanism on this page stays the same: bond yields set the rate, the lender decides how much of the move to pass on, and the comparison across all four is where the money is found.
Frequently asked questions
Why did CHIP reverse mortgage rates go up in September 2026?
HomeEquity Bank raised the advertised 5-year rate on the CHIP Reverse Mortgage from 6.39% to 6.94% effective August 31, 2026. The Bank of Canada had not moved. The increase followed a rise in Government of Canada bond yields, which set the cost of the money fixed-rate lenders lend out. The 5-year bond yield climbed from about 3.03% in early July to 3.65% by mid-September, its highest level in more than two years, and Canadian lenders raised fixed mortgage rates through August in response.
Did the Bank of Canada raise interest rates in September 2026?
No. The Bank of Canada held its policy rate at 2.25% on September 2, 2026, the seventh hold in a row. Its statement noted that long-term bond yields had moved up globally, including in Canada, and the minutes of that meeting warned that a rate increase could be needed if high gasoline prices spread into other prices. The next decision dates are October 28 and December 9, 2026.
What is the current CHIP reverse mortgage rate?
As of August 31, 2026, HomeEquity Bank advertises 6.94% on a 5-year fixed CHIP Reverse Mortgage for new clients, with an annual percentage rate of 7.37% on its $150,000 example. Its 1-year fixed is 6.99%, its 3-year fixed 6.69%, and its variable rate 6.86%. The separate rate schedule that existing CHIP mortgages reset to at the end of a term shows 7.54% for the 5-year term, 0.60 points above the advertised rate.
Are reverse mortgage rates going up in Canada?
One of the four Canadian reverse mortgage lenders raised its 5-year rate by 0.55 points on August 31, 2026, and one raised the rate on its lifetime-fixed product by 0.15 points. Two lenders held their 5-year rates at July levels through September 17. Bond yields, which drive fixed rates, were still rising in mid-September, and both the United States Federal Reserve and the Bank of Canada have signalled that further increases are possible. Nobody can forecast rates reliably, so the honest reading is that the direction has turned upward but the lenders have not all moved yet.
Is the 4.99% one-year reverse mortgage rate a good deal?
Equitable Bank is advertising 4.99% (5.901% APR) on a one-year fixed term for its Flex and Flex Lite reverse mortgages until September 30, 2026. It is the lowest advertised reverse mortgage rate in Canada today. The catch is the term: after twelve months the rate resets to whatever the lender offers at that time, and a reverse mortgage cannot be moved to another lender penalty-free just because a term has ended. Whether the one-year special or a longer fixed term costs less over the years you plan to keep the mortgage depends on your plans, and a mortgage broker works that out against all four lenders before you choose.
What happens to an existing reverse mortgage when rates rise?
Nothing changes until the current term ends. A fixed rate stays fixed for the term chosen, and there is no monthly mortgage payment for a rate rise to squeeze. When the term ends, the rate resets to the lender's rate for a new term on that day, and the balance grows faster from then on if that rate is higher. Some lenders reset existing clients at their advertised new-client rate; others use a separate, higher schedule. A broker who compares lenders before you sign, and who contacts you about six months before each reset, is how that difference gets managed.
Get this month's rates priced on your actual home
Your options and the recommendation, in writing, across all four reverse mortgage lenders in Canada. Free, no credit check, no sales pressure. If a reverse mortgage is the wrong answer for you, you'll be told that too.
Get my free estimate About the author
Richard Hopkins
Licensed Mortgage Broker · M16000896
Richard has worked in the mortgage business since 2013 — first as a mortgage agent, today a licensed mortgage broker — and leads the reverse mortgage practice at Homestead Financial — Dominion Lending Centres, an FSRA-licensed Ontario brokerage (#11711) with roots in the industry since 1999 and more than 2,500 mortgages funded. More about Richard →
This article is general information for Canadian homeowners, not personal financial, legal, or tax advice. Everyone's situation is different — please get advice on your own numbers before making a decision. Rates and lender details verified as of September 17, 2026.