HomeEquity Bank finally has competition.
Equitable Bank has rolled out a product called PATH Home Plan, the first reverse mortgage to compete with CHIP since 2008.
PATH has one key advantage over CHIP, its penalties. PATH’s prepayment fees are notably cheaper than CHIP which is important if a borrower is unsure about how long they’ll remain in their home.
That said, CHIP offers higher loan amounts, a broader footprint (PATH is only available in Alberta, British Columbia, and Ontario) and more lending options.
At this time, the rates for both CHIP and PATH are the same. In time, the new competition may force reverse mortgage rates down in this country. But that could take a while.