Equitable Bank is Canada's 9th largest bank by assets and has established itself as one of the country's leading digital challenger banks. Founded in 1970 as The Equitable Trust Company, it obtained Schedule I bank status in 2013 and has since grown aggressively, particularly in the alternative lending and HELOC segments. Equitable operates under two brands: EQ Bank for personal savings and GICs (which it markets nationally with no-fee, high-interest accounts), and Equitable Bank for mortgage lending distributed exclusively through the broker channel.
Equitable Bank is perhaps best known in the mortgage market for offering a highly competitive HELOC rate at Prime plus 0.25% — substantially below the Prime plus 0.50%–1.00% rates charged by the Big Six banks. This makes Equitable's HELOC product particularly attractive for homeowners who carry a significant balance on their line of credit and want to minimize interest costs. The EQ Bank HELOC is available across all provinces and is fully managed through the broker network.
Equitable Bank has a well-earned reputation for flexibility with non-traditional borrower profiles. Their alternative lending programs accommodate self-employed borrowers, newcomers to Canada, recent credit blemishes, and borrowers with non-traditional income sources. This makes Equitable a go-to lender for mortgage brokers handling complex files that don't fit neatly into the "A" lending box of the Big Six banks, while still offering competitive rates comparable to leading monolines on prime borrower files.
For fixed-rate mortgages, Equitable Bank charges the greater of three months' interest or the Interest Rate Differential (IRD). Equitable calculates the IRD using the contracted rate compared to their current rate for the nearest comparable term — this is a more transparent approach than the posted-rate method used by most Big Six banks, resulting in more predictable penalties. The HELOC portion of a combined mortgage and HELOC product carries no early repayment penalty since it is a revolving credit product. Variable-rate mortgages are subject to a three-month interest penalty only. Borrowers should confirm their specific penalty calculation with their broker before breaking a fixed-rate mortgage mid-term.
Equitable Bank prices its HELOC at Prime plus 0.25% (currently 4.70%), compared to Prime plus 0.50%–1.00% at most Big Six banks (which puts Big Bank HELOCs at 4.95%–5.45%). The difference stems from Equitable's lower overhead costs as a digital-first lender and their strategic decision to use the HELOC as a market-penetration product. While Big Six banks treat the HELOC as a premium product generating significant margin, Equitable uses competitive HELOC pricing to attract broker referrals and build long-term borrower relationships. On a $200,000 HELOC balance, a 0.50% rate difference equates to approximately $1,000 in annual interest assuming rates remain constant. Actual savings depend on your balance, rate changes, and market conditions.
Yes — and Equitable Bank is one of the best Canadian lenders for self-employed borrowers. Equitable offers programs for self-employed individuals who have been operating their business for as little as two years. For well-documented self-employed borrowers (with NOAs and T1 Generals), they qualify under standard income guidelines. For those with limited documentation or who expense heavily through their corporation, Equitable's stated-income and business-for-self programs allow qualification based on stated business income with a reasonable justification. These programs accept higher loan-to-value ratios and allow for a range of income documentation approaches not accepted by Big Six banks.
Equitable Bank and EQ Bank are two brands operated by the same parent company — EQB Inc. (formerly Equitable Group). EQ Bank is the digital personal banking brand focused on savings accounts, GICs, and everyday banking — it's known for offering some of Canada's highest savings account interest rates with no monthly fees. Equitable Bank is the mortgage lending brand, distributed exclusively through licensed mortgage brokers, and offers residential mortgages, HELOCs, and commercial mortgage products. When your broker arranges an "Equitable Bank mortgage," the mortgage is funded and serviced by Equitable Bank, the federally regulated Schedule I bank.
Have a specific question about Equitable Bank rates, products, or eligibility? A licensed broker will review your question and be in touch.