Alternative Mortgage Lenders in Canada: B Lenders Compared
B lenders — alternative lenders — take the files that miss an A lender's rules on income documentation or credit: self-employed borrowers with heavy write-offs, bruised credit that is repairing, newcomers without history. Higher rate, usually a fee, and a path back to A pricing at renewal. These are the lenders in our directory whose own type label says alternative or B-lender.
Alternative (B) Mortgage Lenders in Canada
Effort Trust
Monoline Trust company On this week's rate boardOntario
Southern Ontario borrowers with imperfect credit, self-employment income or a complicated file that a bank will not accommodate.
Glasslake Funding
Monoline Alternative lendingOntario · Bayview Asset Management, LLC
Self-employed people, newcomers and property investors in Ontario, Alberta or BC whose applications fall outside bank guidelines.
Haventree Bank
Bank Schedule AAlternative lending On this week's rate boardOntario
Canadians who do not fit bank guidelines, including the self-employed, newcomers, and those with bruised or thin credit.
Home Trust
Monoline Trust company On this week's rate boardOntario · Home Capital Group Inc., owned by Smith Financial Corporation
Borrowers who cannot document income conventionally, or who have thin or bruised credit, and want a long-established alternative lender.
National Bank - Optimum Mortgage
Bank Schedule AAlternative lending On this week's rate boardAlberta · National Bank of Canada
Self-employed borrowers, people rebuilding credit, and rental property investors who want an alternative mortgage backed by a chartered bank.
NPX
Monoline Alternative lending On this week's rate boardOntario · MERIX Financial (Paradigm Quest Inc.), owned by MCAP
Self-employed and non-traditional-income borrowers in Ontario, British Columbia or Alberta who fall outside insured and prime uninsured guidelines.
Alternative (b) mortgage lenders by province
Where each lender is based. Lending areas are wider than head offices — confirm coverage with the lender or a broker.
Other kinds of lender
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Alternative (B) Mortgage Lenders questions
What is a B lender in Canada?
A regulated lender — often a trust company or a bank's alternative arm — that lends to borrowers who do not fit an A lender's income or credit rules. Pricing is higher and a lender fee of about 1% is common, but the borrower is still a bank-style customer with a term and a renewal.
B lender vs private lender: what is the difference?
A B lender still underwrites the borrower — income (documented differently), credit (with tolerance), and the property. A private lender underwrites the property first; the borrower's income is secondary. B lending is the middle rung of the A / B / private ladder.
Can I move from a B lender back to an A lender?
That is the plan on almost every B file: one or two years of clean payments, credit repaired or income documented, then a switch to A pricing at renewal. A broker structures the B term with that exit in mind.
Which alternative (b) lender will take your file?
When you are ready to do something with these numbers, we will introduce you to a licensed broker who can put the file in front of lenders. Nothing here obliges you to.
