List of Canada’s Mortgage Lenders [2025]

Buying a home in Canada means navigating a list of Canada’s mortgage lenders that goes far beyond just the big banks. There are many different types of mortgage lenders – from traditional banks to specialty finance companies and even private individuals – each serving different borrower needs. Understanding how these lenders work, and which category fits your situation, is key to securing the best mortgage. In this guide, we’ll explain the various types of mortgage lenders in Canada (A-lenders, monoline lenders, B-lenders, credit unions, and private lenders), provide examples of each, and show how you can connect with the right lender. We’ll also highlight how Unrate.ca’s online mortgage broker service can help you find the ideal lender and competitive mortgage rates with ease.

Mortgage lending in Canada is evolving. While banks still issue the majority of mortgages, alternative lenders like credit unions, monoline lenders, and private lenders have rapidly grown their market share in recent years. This means homebuyers have more options than ever, but it can be overwhelming to know where to start. That’s where a mortgage broker like Unrate comes in – guiding you through all the choices. Let’s begin with how mortgage lending works in Canada and the role of brokers, then dive into the full list of lender categories and examples.

How Mortgage Lenders Work in Canada (and the Role of Brokers)

In Canada, a mortgage lender is any institution or individual that lends money secured by real estate. This includes chartered banks, trust companies, credit unions, insurance companies, mortgage finance companies, and private individuals. Mortgage lenders can be federally regulated (like the big banks), provincially regulated (like many credit unions), or completely private entities. No matter the type, all lenders assess the risk of lending to you based on factors like your credit score, income, debts, and the property value.

Mortgage Brokers vs. Direct Lending: As a borrower, you have two main ways to get a mortgage:

• Directly from a lender. You can approach a bank or credit union yourself, apply for a mortgage, and take whatever products and rates they offer. This route means you deal with each lender one-on-one, which can limit you to that lender’s specific criteria and rates.
• Through a mortgage broker. A mortgage broker acts as an intermediary between you and multiple lenders. Brokers are licensed professionals who shop around on your behalf – you provide one mortgage application and they can present it to a network of lenders to find the best fit. The broker doesn’t lend money themselves; instead, they help you find the best rates and terms available in the market. Brokers often have access to exclusive rates or special mortgage products not available to the public directly. Importantly, brokers are typically paid by the lender (a commission or finder’s fee), so their service can be free for the borrower in most cases.

Why use a mortgage broker? Brokers are especially valuable given the variety of lender types in Canada. Many non-bank lenders (like monoline lenders and B-lenders) don’t have branches or retail presence – they rely on brokers to bring them clients. If you only talk to your regular bank, you might miss out on better rates or approvals that a different lender could offer. A broker ensures you see multiple mortgage options side by side. For example, Unrate.ca is an online mortgage broker with a network of over 30 lenders, allowing clients to access a wide range of mortgage options and very competitive rates. By using Unrate, “lenders fight for your money” in the sense that multiple lenders will review your application and compete to offer you the best deal, saving you both money and time.

Benefits of using a broker (like Unrate):

• Access to Many Lenders: A broker can connect you with dozens of lenders through one application – including major banks, credit unions, monoline mortgage companies, and private lenders. This casts a wider net to find you a mortgage approval and low rate.
• Expert Guidance: Brokers evaluate your situation (credit score, income, down payment, etc.) and match you with the right type of lender. If you have excellent credit, they’ll focus on A-lenders; if you have past credit issues or unusual income, they might seek out a B-lender or other alternative. Unrate combines all your factors to pinpoint the best mortgage for your profile.
• Potentially Lower Rates: Because brokers can make lenders compete, you often get more competitive mortgage rates than if you approached a lender alone. Brokers negotiate on your behalf. Unrate, for instance, bargains with its lender network to secure rates not often available from conventional banks – resulting in lower monthly payments for you.
• Streamlined Process: A good broker simplifies the mortgage process. Unrate’s online platform is designed for fast, stress-free approvals – you can apply from home and avoid multiple bank appointments and paperwork. The broker handles the legwork and paperwork, and guides you through each step until your mortgage is finalized.
• No Cost to You (in many cases): Most brokers, including Unrate, are paid by the lender you choose, meaning you typically don’t pay a fee for their service. You get the benefit of professional advice and shopping around at no direct cost.

In summary, mortgage brokers play a crucial role in Canada’s lending landscape by helping borrowers interact with all the different types of lenders. Whether you go direct or use a broker, it’s important to know the categories of mortgage lenders available. Below, we break down the full list of mortgage lender types in Canada, with examples of each:

A-Lenders (Major Banks and Prime Mortgage Lenders)

A-Lenders are the prime mortgage lenders – usually Canada’s big banks and other financial institutions that cater to borrowers with strong credit and stable income. These lenders have the strictest lending requirements and typically offer the lowest mortgage rates to well-qualified borrowers. To get approved by an A-lender, you usually need a good credit score (often 700 or above), reliable employment or income, and to pass the federal mortgage stress test (ensuring you can afford payments at a higher hypothetical rate). In exchange, A-lender mortgages can be insured (if you have less than 20% down and meet requirements) and come with the most competitive interest rates and terms.

The Big Six Banks (RBC, TD, Scotiabank, BMO, CIBC, and National Bank) dominate this category. In fact, the majority of Canadian mortgages are through these major banks – for example, Royal Bank of Canada (RBC) alone held about 21.7% of Canada’s \$2 trillion mortgage market in Q2 2024, making it the single largest mortgage lender in the country. These large A-lenders are federally regulated and tend to have strict criteria, so if a borrower falls outside the norm (e.g., credit issues or non-traditional income), they might decline the application – which is when borrowers may turn to alternative lenders. But for those who qualify, A-lenders can offer excellent rates and a full range of services (like branch access, banking packages, etc.).

Examples of A-Lenders in Canada (Major Banks & Institutions):

1. Royal Bank of Canada (RBC) – Canada’s largest bank and mortgage lender. RBC offers a wide range of mortgage products (fixed, variable, lines of credit) and extensive branch and online services nationwide. With the biggest market share in mortgages, RBC is known for competitive rates for well-qualified buyers and robust customer service.
2. TD Bank (Toronto-Dominion Bank) – A top-five bank in Canada, TD provides prime mortgages with flexible options (like portability and prepayment privileges) and a large branch network. It’s known for strong customer service and various mortgage solutions for different needs (first-time buyers, refinances, etc.).
3. Scotiabank – One of the Big Six banks, Scotiabank offers mortgages across Canada, including specialty programs for professionals and newcomers. As an A-lender, Scotiabank adheres to strict lending standards but provides competitive rates and many branch and digital resources for borrowers.
4. Bank of Montreal (BMO) – A major national bank with a full suite of mortgage offerings (from insured first-time buyer mortgages to refinancing and home equity lines). BMO often runs promotional rates and has unique features like the BMO Cashback mortgage. They focus on prime lending, so strong credit is needed to qualify for their best rates.
5. CIBC (Canadian Imperial Bank of Commerce) – Another Big Six bank, CIBC provides conventional mortgages, insured mortgages, and other home financing options. They have mobile mortgage advisors and work with brokers as well, aiming to offer competitive rates to prime clients. CIBC is known for tailored lending advice and cross-selling banking services to mortgage clients.
6. National Bank of Canada – The sixth-largest bank, National Bank is a major lender especially in Quebec (but also expanding across other provinces). They offer prime mortgages and often have special programs for self-employed borrowers and professionals, albeit still within an A-lender framework. They require good credit and income, similar to other big banks.
   Other A-lender institutions: In addition to the big banks, other federally regulated lenders like HSBC Canada (which was acquired by RBC in 2023) and Manulife Bank (which offers the Manulife One mortgage) fall into the A-lender category. Many large credit unions (discussed later) also function as A-lenders for their members. The key is that A-lenders target “prime” borrowers – those with low risk profiles – and offer the best rates for those customers.

Working with A-lenders through Unrate: If you have strong finances, Unrate can help you compare offers from all the major banks at once. Instead of visiting each bank, you can submit one application and have Unrate present you with rate offers from, say, RBC, TD, and Scotiabank simultaneously. This ensures you get the lowest rate among the banks (and sometimes even better if smaller lenders beat the bank rates). Unrate’s lender network includes these major institutions, so you won’t miss out on any prime deals.

Monoline Lenders (Mortgage-Only Institutions)

Not all lenders are full-service banks. Monoline lenders are mortgage lenders that specialize exclusively in mortgages – they typically do not offer chequing accounts, credit cards, or other banking products. These institutions focus on one line of business (hence “mono-line”) and often operate without physical branches. Monoline lenders usually make their mortgages available only through mortgage brokers (they don’t deal directly with the public). Because of their singular focus and lower overhead (no costly branch network), monoline lenders are known for very competitive rates and flexible terms, often beating the banks on features like prepayment privileges.

Monoline lenders are a significant part of Canada’s mortgage landscape, especially in the broker channel. Over the past decade, their presence has grown; for example, alternative mortgage providers (including monolines, credit unions, etc.) increased their share of new mortgages while the big banks’ share fell from over 70% in 2020 to about 59.5% in 2023. Many homebuyers who use a broker end up with a monoline lender because they can get a better rate or approval that way. These lenders are regulated and often fund their mortgages through various means like selling mortgage-backed securities or lines of credit from bigger banks. From a borrower’s perspective, a mortgage with a monoline lender is as safe as with a bank – you make your payments, and if the lender ever ceased operations, another institution would take over the mortgage.

Key features of monoline lenders: They don’t take deposits or have customer accounts; they solely lend mortgages. This means their staff are mortgage experts, and their products can be innovative. Most monolines offer standard prime mortgages (for qualified borrowers) and some also have alternative lending divisions for those who fall just outside bank criteria. Working with monolines almost always requires a broker; Unrate connects borrowers with these lenders seamlessly, so you can benefit from their low rates even though you can’t walk into a “Monoline Bank” on the street.

Examples of Monoline Mortgage Lenders in Canada:

• First National Financial – First National is one of Canada’s largest non-bank mortgage lenders, with a focus on residential and commercial mortgages. Operating across Canada via the broker channel, First National is known for competitive interest rates and being a top choice for brokers placing clients with an alternative to the big banks. It specializes in both insured mortgages and conventional mortgages, and as of recent data manages a significant portfolio of mortgage loans.
• MCAP – MCAP is a major mortgage finance company (often termed a Mortgage Finance Company, or MFC) that offers a wide range of mortgage solutions through brokers. With operations Canada-wide, MCAP funds residential mortgages (including owner-occupied and rental properties) and even construction loans. MCAP, along with First National, is among the largest monoline lenders – in fact, together with a couple of others, they accounted for about 12% of outstanding Canadian mortgages as of 2015, a share that has likely grown. MCAP often has competitive fixed and variable rates that brokers can offer to clients.
• MERIX Financial (Paradigm Quest) – Merix is a monoline lender that provides mortgage solutions via brokers, including both prime mortgages and near-prime options. They have innovative products like their NPX program, which can approve borrowers with credit scores as low as 500 under certain conditions – this indicates Merix can also act as a B-lender for some clients. For most borrowers, Merix offers standard mortgage terms (1-5 year fixed or variable) with competitive pricing. It operates under Paradigm Quest and also through sub-brands (like Lendwise) to provide a variety of mortgage offerings.
• RFA Mortgage – RFA is a newer name that emerged by acquiring Street Capital Bank in 2019. RFA now operates as a monoline lender offering both A-lender products and alternative mortgages. They provide insured mortgages, conventional mortgages, and even some rental and stated-income products. RFA’s entry via Street Capital gave it access to a base of broker relationships and it has since grown its presence in the broker market. They emphasize competitive rates and a mix of prime and near-prime lending, making them a versatile lender for brokers to consider.
• CMLS Financial – CMLS is one of Canada’s largest independent mortgage lenders, with a history in commercial lending and a growing residential mortgage book. It works with mortgage brokers to fund home loans across the country. In 2024, CMLS made news when it was acquired by nesto (a digital mortgage company), forming one of the biggest mortgage lender entities with \$60 billion in mortgages under administration. CMLS is a monoline lender that offers competitive rates on conventional mortgages and also deals in construction and commercial mortgages.

Other notable monoline lenders: Lendwise/NPX, Radius Financial, Pine, QuestMortgage, CanWise Financial, Marathon Mortgage, and MCAN are all examples of mortgage-focused lenders that either operate through brokers or online. Many of these are newer fintech-style lenders that still fit the monoline model (mortgages only).

Monoline lenders often fly under the radar because they don’t advertise like banks – but brokers like Unrate will bring them to the table when they can offer you a better deal. If you apply with Unrate, don’t be surprised if your quoted best rate comes from a name you haven’t heard (like First National or MCAP); these lenders are trusted, regulated institutions and can save you money. Unrate’s ability to connect with these mortgage-only lenders ensures you won’t miss out on their low rates and flexible terms.

B-Lenders (Alternative Lenders for Challenging Credit or Income)

Not everyone can qualify for a mortgage with the strict criteria of the big banks. B-Lenders (also known as alternative lenders or subprime lenders) step in to serve borrowers who have lower credit scores, higher debt levels, or non-traditional income sources. These lenders are willing to take on slightly more risk in exchange for charging higher interest rates and fees. If you’ve been declined by an A-lender, a B-lender might still approve your mortgage.

Who are B-lender borrowers? They include people with bruised credit (often a credit score under ~680 or even under 600 in some cases), those who are self-employed or have irregular income making it hard to prove steady earnings, recent immigrants with limited credit history, or those who had a past bankruptcy or consumer proposal. Even some borrowers with good credit might use B-lenders if the property doesn’t qualify with a bank (such as a small rural home, or a condo hotel unit), or if their debt service ratios exceed the strict limits imposed by A-lenders. B-lenders are more flexible – for example, they might accept a higher debt-to-income ratio or consider income from sources a bank wouldn’t count.

Key differences of B-lenders:

• No Default Insurance: B-lenders generally do not use CMHC or other default insurance on their mortgages (these are sometimes called “uninsured” or “conventional” mortgages only). This means you’ll need a down payment of at least 20% (or equivalent home equity for a refinance) to qualify, since insured low-down-payment mortgages are primarily the realm of A-lenders. For instance, Home Trust (a major B-lender) requires a minimum 20% down on its classic alternative mortgages.
• Higher Interest Rates: Because they lend to higher-risk borrowers, B-lenders charge higher interest rates on mortgages – often a few percentage points above typical bank rates. They may also charge a lender fee (e.g., 1% of the loan) upon closing. Borrowers trade off cost for the ability to get approved.
• Shorter Terms: Many alternative mortgages have 1 or 2-year terms, rather than the more common 5-year terms with A-lenders. The idea is often to use a B-lender as a temporary solution, giving the borrower time to improve their credit or finances, then switch to an A-lender later. Some B-lenders do offer 3 or 5-year terms, but with an expectation that rates could be higher at renewal if the situation hasn’t improved.
• Flexible Criteria: B-lenders will consider case-by-case exceptions. They might allow a lower credit score, or consider stated income for a self-employed person (with proof of business bank statements rather than traditional pay stubs). They often manually underwrite files rather than just relying on a formula. This human approach can approve people the banks reject. For example, MERIX’s NPX program (as a B-option) can accept credit scores in the 500s by using alternative qualification metrics.
• Regulation: Many B-lenders are federally or provincially regulated financial institutions (trust companies or smaller banks). They still follow laws and oversight, and if they issue insured mortgages (some B-lenders also do some prime lending), they must meet those rules too. As a borrower, it’s safe to work with reputable B-lenders – just always review the terms carefully.

Because alternative lenders often don’t have branches, working with a mortgage broker is the best way to access B-lenders. Brokers know which lender is likely to approve your unique situation. Unrate explicitly caters to this need – “If you don’t qualify for a typical mortgage, we’ll find one that fits.”. Through Unrate’s network, clients can be matched to the right B-lender that will approve their mortgage and offer a reasonable rate for their scenario. Unrate ensures that even if your credit or income is less than ideal, you’re connected with a lender who is willing to work with you, rather than facing repeated declines.

Examples of B-Lenders in Canada:

• Home Trust Company – Home Trust is one of Canada’s most established alternative lenders. It specializes in Alt-A and subprime mortgages for clients who don’t meet bank criteria. For instance, Home Trust’s “Classic” mortgage serves self-employed individuals, newcomers with limited credit, or those recovering from financial difficulties (like a past bankruptcy). A minimum 20% down payment is required, and interest rates are higher than bank rates. Home Trust also offers other products like credit cards for people rebuilding credit, making it a go-to lender for many brokers with clients in challenging situations.
• Equitable Bank (EQB) – Equitable Bank is a Schedule I bank in Canada that operates mainly as a branchless institution. It started as a trust company and has grown into one of the leading alternative lenders, while also offering online banking (EQ Bank) for deposits. Equitable provides a range of mortgage solutions: some that mirror A-lender products for prime customers, and others that are more flexible for near-prime borrowers. Equitable commonly serves those with slightly lower credit or unique income sources. It’s cited as a prominent Alt-A/B lender in Canada. Equitable’s rates for alternative deals are higher than mainstream banks, but they often approve loans that banks would turn down.
• Bridgewater Bank – Bridgewater is an Alberta-based bank owned by ATB Financial, operating nationally through brokers for its mortgages. It focuses on alternative lending, offering mortgages for those who fall just outside traditional guidelines (credit issues, high debt ratios, etc.). Bridgewater Bank is known for common-sense underwriting – looking at the story behind the application. They are mentioned among notable Alt-A and B lenders in Canada. While headquartered in the West, Bridgewater lends across Canada except Quebec. They require at least 20% down and offer short-term and 5-year options for mortgages.
• Community Trust – Community Trust is a trust company based in Ontario that provides B-lender mortgages through brokers. They specialize in helping borrowers who can’t get bank financing, including those with past credit problems or non-traditional income. Community Trust often finances rental properties and stated-income files that others won’t. They are one of the alternative lenders in Canada’s mortgage market. Borrowers working with Community Trust will need significant equity/down payment and can expect interest rates reflecting the increased risk.
• Optimum Mortgage (CWB) – Optimum is the alternative mortgage division of Canadian Western Bank. Through Optimum, brokers can secure mortgages for clients who don’t fit the usual bank profile – for instance, stated income programs for business owners, or deals for credit scores in the low 600s. Because it’s backed by a Schedule I bank (CWB), Optimum blends some bank stability with alternative flexibility. They often require 25-35% down for their programs. (Optimum is an example of a B-lender associated with a parent bank; other banks sometimes have similar arms or make exceptions for existing clients in a B-lending style.)

These are just a few examples – other notable B/Alt lenders include RFA’s alternative lending products, Radius Financial (which has some innovative funding models), Havent (a newer alt lender), and various regional trust companies. The alternative space is diverse.

Using Unrate for B-lenders: Unrate’s platform will automatically consider alternative lenders if your profile calls for it. Rather than you having to hunt for a B-lender, Unrate will match you to one from its network and present the option alongside any bank offers. This makes the process far easier and helps you understand the cost difference and benefits. The goal is to get you approved for a mortgage even if the banks said no, and then later (with improved credit/income) perhaps help you move back to an A-lender for a better rate. Unrate’s brokers can also advise on how to improve your financial picture so that a B-mortgage is a stepping stone, not a permanent situation.

Credit Unions (Regional and National Cooperative Lenders)

Credit unions are member-owned financial cooperatives that offer banking services similar to banks, including mortgages. In Canada, credit unions are a major category of mortgage lenders, especially in certain provinces. They are often considered alongside banks as A-lenders when dealing with prime borrowers, but we’ll discuss them separately because their structure and offerings have some unique aspects.

Key characteristics of credit unions in Canada:

• Member-Owned and Regional: Each credit union is owned by its members (the depositors and borrowers). They often serve a specific province or community. For example, Meridian operates in Ontario, Servus in Alberta, Vancity in British Columbia. You generally need to become a member (usually a simple process of opening a savings account with a nominal amount) to get a mortgage from a credit union.
• Regulation: Most credit unions are provincially regulated, which means they are not subject to federal bank regulations like OSFI’s mortgage stress test rules on uninsured mortgages. Many provinces have their own rules, but this can sometimes allow credit unions a bit more flexibility. For instance, a credit union might approve a slightly higher debt-service ratio or offer a mortgage to someone just shy of the typical criteria, whereas a bank regulated by OSFI could not. (However, credit unions do tend to follow prudent lending practices and often voluntarily use the stress test guidelines to ensure borrowers can afford the loan.) Some credit unions have become federally regulated in recent years (called federal credit unions) which allows them to operate nationwide (e.g., Coast Capital and Meridian’s Motus Bank), and those ones do follow federal rules..
• Competitive Rates and Personal Service: Credit unions often offer interest rates comparable to (or sometimes better than) the big banks for mortgages. They may have promotions to attract members. Additionally, profits are returned to members through profit-sharing or patronage dividends, which can effectively reduce the cost of borrowing if you get a payout at year-end. Many members value the personalized service and community focus of credit unions – decisions can be made locally and sometimes more flexibly than big banks (for example, considering your long-term membership or personal story).
• Size and Reach: Collectively, credit unions are significant. Outside Quebec, there are 188 credit unions with over \$312 billion in assets as of 2024. Within Quebec, the Desjardins network (caisses populaires) is even larger, with over \$370 billion in assets (Desjardins is a federation of credit unions and the largest in Canada, though primarily French-speaking). Many of the largest credit unions are in English-speaking provinces such as B.C. and Ontario.

Some English-speaking credit unions of note (among the largest in Canada) include Vancity, Coast Capital Savings, Meridian Credit Union, and Servus Credit Union. These institutions collectively serve millions of Canadians. Credit unions often appear in lists of top mortgage lenders in their regions, competing head-to-head with banks.

Examples of Prominent Credit Unions and their Mortgage Offerings:

• Meridian Credit Union – Based in Ontario, Meridian is Ontario’s largest credit union and one of the biggest in Canada by assets. It offers a full suite of mortgage options to its members, including fixed and variable rates that are very competitive with the big banks. Meridian is known for flexible terms and was among the first to offer features like skip-a-payment. They also launched Motus Bank, a digital-only federal bank, to extend services across Canada. As a member-owned lender, Meridian shares profits with members and focuses on personal service and financial advice.
• Vancity (Vancouver City Savings Credit Union) – Vancity is the largest community credit union in Canada, headquartered in Vancouver, BC. It has a strong emphasis on community values, ethical investing, and sustainability. Vancity provides mortgages primarily in the Metro Vancouver area and Vancouver Island. They often have specialized mortgages (for example, green building discounts or assistance for first-time buyers in high-priced markets). Vancity’s size (over half a million members) and asset base make it a major player in BC’s mortgage market.
• Coast Capital Savings – Another B.C.-based credit union, Coast Capital became a federal credit union in recent years, meaning membership is open to Canadians in any province. Coast Capital offers mortgages with competitive rates and unique features like their “Where You’re At” Mortgage which can blend fixed and variable portions. Because they operate nationally now, borrowers across Canada can join and apply. Coast Capital has a large presence in BC and has aimed to grow beyond.
• Servus Credit Union – Servus is a leading credit union in Alberta, with branches across the province. It provides all the usual mortgage types and often matches bank rates. Servus is known for its profit-sharing: members receive a annual share of profits (cash back reward) which effectively reduces the cost of borrowing. For example, as a Servus member with a mortgage, you might get a few hundred dollars back at year-end based on the interest you paid. This is a unique perk vs. banks. Servus’s size and assets (tens of billions) put it among the top credit unions in Canada.
• Alterna Savings and Alterna Bank – Alterna is an Ontario-based credit union that also operates a federal subsidiary (Alterna Bank). Through Alterna, members can get mortgages in Ontario or through Alterna Bank across Canada. Alterna has a history as one of the first credit unions in Canada (formerly CS CO-OP and Metro Credit Union merged). They offer competitive mortgage rates and have been known to service some niche markets (such as co-op housing mortgages). Alterna’s presence in Ottawa and Toronto is strong, and they often come up with attractive fixed-rate promotions for their members.

Other sizable credit unions: First West Credit Union in BC (operating under brands like Envision Financial, Valley First), Conexus Credit Union and Affinity Credit Union in Saskatchewan (now merging into “Beem Credit Union”), Access Credit Union and Steinbach Credit Union in Manitoba, and Desjardins Ontario in Ontario (the Ontario arm of Quebec’s Desjardins, serving bilingual communities) are all significant lenders in their regions. These credit unions collectively handle a large volume of mortgages.

How to access credit unions: Many borrowers go directly to their local credit union to apply for a mortgage, since credit unions emphasize relationship banking. However, some credit unions are also accessible via brokers (for instance, Meridian has partnered with brokers for certain mortgage products, and credit unions like DUCA in Ontario work with broker channels). If you’re using Unrate or another broker, ask if any credit union options are available for your profile. Unrate’s focus is on its network of over 30 lenders which primarily includes banks, monolines, and specialized lenders; even if credit unions are not directly on the platform, Unrate’s experts can advise if, say, a credit union might offer a niche product for you (such as a higher tolerance on ratios) and guide you accordingly. That said, the majority of credit union offerings overlap with what other A-lenders provide, so often a similar or better deal might be found through Unrate’s existing lender partners.

Private Lenders (Individual and Corporate Private Financing)

The last category of mortgage lenders in Canada are private lenders. Private mortgage lenders are essentially non-institutional lenders – this could mean an individual investor lending their own money, or a company that isn’t a traditional bank or credit union lending funds, often secured by real estate. Private lenders operate with their own set of rules and are generally not regulated in the same way banks and credit unions are. They fill an important niche for borrowers who cannot obtain financing through any institutional lender (A, B, or credit union).

When might you need a private lender? Some scenarios include: very poor credit (e.g., recent bankruptcy or consumer proposal not yet discharged), insufficient income documentation (perhaps you just started a business and have almost no provable income yet), a need for a very fast short-term loan (closing in a week and banks won’t do it in time), or financing on a property that banks won’t touch (such as land only, or a home in significant disrepair). Private lenders also often do second mortgages or home equity loans behind a first mortgage, to help homeowners pull out equity when the bank says no to additional financing. Essentially, private lenders look more at the property value and equity available than at your personal covenant. If you have a lot of equity (a low loan-to-value ratio), a private lender may lend even if you have credit or income challenges.

How private mortgages work: Private lending is frequently short-term. Loans are typically 6 months to 2 years in length, interest-only payments, and then you are expected to either refinance elsewhere or pay it off (for example, by selling the property or improving your situation to qualify with a regular lender). Interest rates on private mortgages are much higher than market rates – often ranging from 8% to 15%, depending on the risk and whether it’s a first or second mortgage. There are also lender fees (and broker fees) that can total a few percentage points of the loan amount. For example, a private lender might offer a 1-year mortgage at 10% interest plus a 2% lender fee upfront. These terms reflect the higher risk and the fact that private money is costlier to obtain. Private loans also typically max out at 75-80% Loan-to-Value (LTV), meaning you must have 20-25% equity (some very risky deals might go to 85% LTV with multiple layers of financing, but that’s uncommon). This protects the lender in case of default – they have a cushion if they need to sell the property under power of sale.

Forms of private lenders:

• Individual Investors: This could be anyone with cash looking to invest in mortgages for a return. Sometimes family members act as private lenders (loaning you money to buy a home, secured on title). More commonly, local real estate investors or retired individuals might lend out say \$100,000 as a mortgage on someone’s home and charge interest. These arrangements are often facilitated by mortgage brokers or mortgage agents who know people willing to fund private deals.
• Mortgage Investment Corporations (MICs): A MIC is a company that pools money from many investors to lend out on mortgages. Investors buy shares in the MIC, and the MIC’s managers underwrite and lend out mortgages to borrowers who need private financing. MICs are a popular way for people to invest in the private mortgage market without funding loans individually. Examples of well-known MICs in Canada include Atrium Mortgage Investment Corporation and Timbercreek Financial (both are even publicly listed companies). These entities often lend on many deals and can handle larger loan amounts. For instance, Atrium MIC provides mortgages for residential, commercial, and development projects, and might charge interest rates around 9-10% with additional lender fees. Timbercreek Financial focuses on commercial real estate bridge financing. MICs adhere to certain regulations under the Income Tax Act but are not regulated like banks – their lending criteria are their own business decisions.
• Private Mortgage Funds or Syndicates: Similar to MICs, there are also syndicated mortgages where several investors collectively fund a single loan. This is more common in large development loans, but sometimes a broker might pool a couple of investors to fund one residential mortgage if needed (e.g., two people each put up half the money). These are more complex and usually handled by licensed mortgage syndication professionals, following provincial rules.

Precautions with private lenders: Because this is the most expensive type of financing, borrowers should consider private mortgages as a short-term last resort or a bridge to a better situation. Always have an exit strategy (how you will pay it off or move to a cheaper lender). That said, private lenders can be lifesavers in certain situations: they can prevent foreclosure by lending when no one else will, or enable a purchase that would otherwise fall through. It is crucial to fully understand the terms (interest-only payments, fees, potential renewal costs) before proceeding.

How to find private lenders: Virtually all private mortgage deals in Canada are arranged through mortgage brokers or mortgage agents. If you need a private mortgage, a broker who has experience in that area will know which MICs or individual lenders might be interested in your application. Platforms like Unrate can facilitate this by including some private lending partners in their network. In fact, Unrate mentions that their diverse pool of lenders includes “smaller private entities known for extending compelling mortgage rates to attract new borrowers”. Through Unrate, if your situation warrants it, they can connect you with a private lender solution just as easily as with a bank. This is a big advantage – you won’t have to separately seek out hard-money lenders; Unrate will bring a safe, vetted private lending option to the table when appropriate. Your information stays secure and any private lender working with Unrate is properly licensed or vetted, so you avoid predatory loan sharks.

Examples of Private Lending in Action:

• An investor in Toronto might offer second mortgages to homeowners who need to consolidate debt but can’t refinance with a bank. They might lend up to 80% of the home’s value at 12% interest for a one-year term. The borrower uses that year to pay off other high-interest debts and improve credit, then refinances with a mainstream lender at term’s end.
• Atrium MIC, a large MIC, funds a \$500,000 first mortgage at 9.5% on a development property in Ontario that a bank deemed too speculative. Atrium charges a 1.5% lender fee on top. The developer completes the project or improves the property, then gets a bank loan to pay off Atrium within 12-18 months.
• A small private lending company in BC might specialize in bridge loans – for example, lending a family \$300,000 for 6 months so they can buy a new house before selling their old one (when traditional bridge financing isn’t available). They secure the loan against the equity in both properties and charge a flat fee and interest, but enable the transaction to happen.

For a regular homebuyer, direct private lending is less common unless you truly hit a wall with other lenders. But it’s good to know this category exists as a fallback. Unrate’s role is to exhaust all the more affordable options first (A, B, credit unions) and only suggest a private lender if absolutely necessary for your case – and even then, to be transparent about the costs and how to eventually move you back to a cheaper lender. With Unrate, you have the comfort of an experienced broker guiding you if the road leads to a private mortgage.

Finding the Right Lender with Unrate.ca

With the comprehensive list of Canada’s mortgage lenders outlined above, it’s clear that borrowers have many options – but also a lot to consider. The type of lender you choose will depend on your financial profile and needs: are you a prime borrower seeking the lowest rate at a big bank? Are you a business owner who might need a flexible monoline lender? Do you have credit challenges that require a B-lender or even a private lender? Matching each borrower to the right lender is exactly where Unrate.ca excels.

Unrate.ca is an online mortgage broker that streamlines the process of finding and securing a mortgage. Here’s how Unrate leverages its services to connect you with the best lender for your situation:

• Extensive Lender Network: Unrate is connected to over 30 lenders across Canada, spanning all categories – major banks, monoline mortgage companies, credit union partners, alternative lenders, and even private lending firms. This means when you apply through Unrate, your single application can reach a broad spectrum of lenders. Whether you could qualify with an A-lender or need a more specialized lender, Unrate has options. This wide network ensures you won’t miss out on the most competitive mortgage rates available in the market. It’s like having dozens of lenders lined up, and you get to pick the best offer.
• Smart Matching to the Right Lender: Unrate’s platform and team will analyze your information (credit, income, down payment, etc.) and determine which lenders are the best fit. For example, if your credit score is excellent and you have stable employment, Unrate will likely route your application to top-tier A-lenders offering low rates. If your profile has some issues, Unrate will consider alternative lenders or monoline lenders that are more accommodating. This intelligent matching saves you from the trial-and-error of applying to multiple places. Unrate’s experts essentially do the shopping for you, presenting you with the best options for which you’re likely to be approved. Their commitment is to “combine all of these factors to get you the lowest mortgage rate possible” for your scenario.
• Competitive Rate Negotiation: Because Unrate sends a high volume of business to lenders, they often can secure better rates than an individual could on their own. Lenders compete for Unrate’s clients – as the website says, “We make lenders fight for your money”. By directly engaging with lenders and even utilizing volume-based discounts, Unrate can obtain rates not commonly advertised to the public. This is especially true for monoline and smaller lenders who might offer a special deal through Unrate to attract borrowers. The result is that you could end up with a rate even lower than what your bank might have offered you, potentially saving you thousands over your mortgage term. Unrate’s model ensures access to rates and products that might otherwise fly under the radar.
• Streamlined Online Process: Unrate has built a modern, user-friendly online application system. The entire process – from initial application to document submission and approval – can be done electronically, at your convenience. This eliminates the need for multiple in-person meetings or waiting in bank lines. According to Unrate, their online process is “streamlined and efficient,” allowing for fast approvals and a hassle-free experience. Borrowers can upload documents securely and get updates in real time. Despite being online, Unrate doesn’t sacrifice personal support – their mortgage advisors are available to answer questions and guide you, giving you the personalized service you’d expect from a traditional broker, combined with the speed of a fintech platform.
• Guidance Through Every Step: Getting a mortgage can be complex, especially if you’re dealing with alternative or private lenders. Unrate’s team provides attentive support throughout the process, helping you understand each offer and the terms. They’ll explain the differences between, say, a bank’s offer and a monoline’s offer, or what it means if a B-lender is recommended. This advice is crucial in making an informed decision. Unrate’s goal is not just to show you rates, but to ensure you end up with a mortgage that truly suits your needs and budget. As a brokerage that prides itself on honesty and diligence, Unrate has built a strong reputation for customer satisfaction (as evidenced by many positive reviews and a high service rating).
• All-Canada Coverage: Whether you’re in Toronto, Vancouver, Halifax, or anywhere in between, Unrate can assist. They explicitly note “we help with your mortgage no matter which province you’re in”. This nationwide reach is great for borrowers in smaller cities or provinces where local lender options might be fewer – Unrate can connect them with larger lenders across the country. It’s also beneficial for those relocating between provinces, as Unrate can seamlessly transition to lenders in the new province.

In conclusion, the Canadian mortgage market offers a wide list of lenders – each category (A-lenders, monolines, B-lenders, credit unions, private lenders) has its own role and set of products. Savvy borrowers will consider all options to find the best mortgage. However, comparing all these on your own can be daunting. That’s why partnering with a service like Unrate.ca can be so valuable. Unrate brings authoritative knowledge and real-time access to virtually every type of lender in Canada, all in one place. By evaluating your situation and letting lenders compete for your business, Unrate helps you secure a mortgage with confidence that you’ve got the best deal available.

Your home is likely the biggest purchase of your life – having the right lender and mortgage terms can save you money and stress for years to come. Whether you end up with a big bank or a boutique lender, what matters is that the mortgage works for you. With the information in this guide and the professional support from Unrate, you are equipped to navigate the full spectrum of Canada’s mortgage lenders and make an informed choice. Start your mortgage search with Unrate today and let their network of lenders compete to offer you the most favorable mortgage, so you can move into your new home with the best rate and terms in hand!