Canada’s housing crisis has pushed affordability to the center of every major policy debate in the country. EQ Bank, the digital arm of EQB Inc., and Canada’s seventh-largest bank by assets, is making the case that a challenger bank can do more than compete on fees.
The housing commitment behind the numbers
EQ Bank’s 2025 Responsibility Report, released this week, puts affordable housing at the top of its social priorities. In 2025, the bank funded $4.3 billion in CMHC-insured multi-unit residential loans, of which $3.5 billion qualified under CMHC’s MLI Select program based on affordable housing criteria.
The MLI Select program ties financing terms to outcomes. Projects that deliver a higher proportion of affordable units earn more points under the program’s scoring framework and receive enhanced financing in return. Per the report, affordability is defined at origination as units rented at or below 30% of the local market median renter income.
Meanwhile, the commitments do not end at closing. Borrowers must maintain agreed-upon rent levels for a minimum of ten years, a requirement documented through a formal social outcome covenant tied to the insured mortgage.
Annual affordability attestations and rent-roll reporting keep the obligation active long after loan issuance.
“Housing affordability remains one of the most presssing challenges facing Canadians,” an EQ Bank spokesperson told Charity Journal. “EQ Bank prioritizes financing project that increase housing supply and support long-term affordability.”
Banking the underserved
Beyond housing, EQB reported 8% year-over-year growth in lending to self-employed Canadians and small and medium-sized businesses. The bank describes this segment as underserved because of the way traditional underwriting works, rather than by financial metrics.
Standard lending models rely heavily on tax documents, which often understate self-employment income. EQ Bank uses financial statements and business bank account data to build a more complete picture of a borrower’s ability to repay, an approach that the bank says will allow it to serve entrepreneurs that other lenders routinely pass over.
“While they often have strong credit fundamentals, many are considered underserved because traditional underwriting methods may not fully reflect how self-employment income is earned,” the spokesperson said.
The bank does not currently offer standalone financial advisory services, but directs customers and the public to its EQ Bank Education Center, covering financial literacy topics from housing to credit score management.
“Together, our tailored underwriting approach and access to financial education resources help support sustainable, long-term credit outcomes,” said EQ Bank.
More than 90,000 Canadians opened an EQ Bank Personal Account in 2025, gaining access to high-interest, no-fee everyday banking.
EQ Bank records progress on the inside
Meanwhile, the report also tracks internal ESG metrics. Notably, female representation in senior leadership rose by seven percentage points, and leaders identifying as racialized persons increased by four percentage points compared to the previous year.
A bird’s-eye view of EQ Bank’s sustainability report indicates that internal candidates filled 33% of new roles in 2025, a 55% increase from the year before.
On the environmental side, EQ Bank maintained carbon neutrality for Scope 1 and Scope 2 emissions for the fifth consecutive year and relocated to a Gold-certified LEED office building in Toronto.
Furthermore, the bank also deployed $24 million in seed capital to support the Climate and Social Fund of ACM Advisors across its first three climate-aligned investments. Early in the week, BioArctic released its annual report reflecting a keen commitment to environmental sustainability, leaning on innovation.