Lenders
Types of mortgage lenders
Lenders fall into a few groups, and the right group depends on your situation. A broker can access all of them.
Best rates for standard files
A lenders
A lenders offer the lowest rates in the market and the most familiar products. They lend to borrowers with good credit and income they can document in a standard way.
Best for
- Good credit and stable, documented income
- Insured and conventional purchases and refinances
- Borrowers who want the lowest rate available
Banks
The big banks and national banks. Many mortgage specialists work from home or by appointment, so you can get the service you want without visiting a branch.
- RBC
- TD
- Scotiabank
- BMO
- CIBC
- National Bank
Credit unions
Member-owned and often regional, with more flexibility in how they look at a file.
- Coast Capital Savings
- Vancity
- Beem
- Community Savings
- CUA
- Meridian
- Servus
- Desjardins
Monolines
Lenders that only do mortgages. They have no branches and offer their products through brokers, often with strong rates and prepayment terms.
- MCAP
- First National
- CMLS Financial
- RFA Bank of Canada
- Merix Financial
Flexible when your file is not standard
B lenders
B lenders (alternative lenders) look at the whole picture, not only the standard rules. Rates are a bit higher, usually for a short term while you build toward an A lender.
Best for
- Self-employed or commission income that is hard to document
- Credit that is rebuilding
- Higher debt ratios or a recent consumer proposal
Alternative lenders
Regulated trust companies and banks that specialize in non-standard files.
- Home Trust
- Equitable Bank
- Haventree Bank
- Bridgewater Bank
- Community Trust
Short-term, equity-based solutions
MIC and private lenders
Mortgage investment corporations (MICs) and private lenders focus on the property and the equity more than income or credit. They are fast and flexible, with higher rates and fees, and are meant to be a bridge.
Best for
- Tax or CRA issues that need solving
- Urgent closings and bridge financing
- Properties or files that banks will not consider
MICs and private lenders
There are many regional MICs and private investors, and the right one depends on the property, the location and the plan to exit. I match you to a suitable lender and make sure there is a clear exit plan.
- Regional MICs
- Private investor lenders
For homeowners 55 and older
Reverse mortgages
A reverse mortgage lets homeowners 55 and over borrow against their home equity without monthly payments. The loan is repaid when the home is sold or the homeowner moves out.
Best for
- Retirees who want to stay in their home
- Supplementing retirement income
- Paying for home care, renovations or helping family
Reverse mortgage lenders
A small number of lenders offer these in Canada, and the rules differ on how much you can borrow and what the interest costs.
- HomeEquity Bank (CHIP)
- Equitable Bank
- Home Trust (EquityAccess)
- Bloom
Lender names are examples of each type, not endorsements or a complete list. Products, rates and eligibility vary by province and change often. Ask Kerri what is available for your situation today.