Alternative Mortgage Lending
in Canada — B-Lenders,
Alt-A & Private.

An alternative mortgage is any mortgage arranged outside the big banks (A-lenders). It comes in three tiers: a regulated B-lender (Home Trust, Equitable, Haventree, MCAN, Community Trust, RFA) with relaxed underwriting; an alt-A monoline for complex-but-strong income; and a private lender or MIC that lends on equity. Alternative mortgages fund files a bank declines — bruised credit, self-employed income, CRA debt, a consumer proposal or discharged bankruptcy — at a modest rate premium, and are meant as a temporary bridge back to A-lender pricing.

Because they read the file differently, not because the rules vanish. Federally regulated lenders, including B-lenders like Home Trust and Equitable Bank, must qualify uninsured borrowers at the greater of the contract rate plus 2% or 5.25% (OSFI). B-lenders then take a more flexible view of bruised credit, self-employed income or an active CRA balance. Private lenders, and some provincially regulated lenders, aren't bound by OSFI's rule and lend mainly on equity.

A B-lender is a regulated, bank-style monoline with relaxed underwriting (Home Trust, Equitable, Haventree, MCAN, Community Trust, RFA); it closes in about 21–35 days at roughly 0.5–1.5% over A-lender pricing plus about a 1% lender fee. A private lender is a MIC or individual using asset-based underwriting; it closes in about 7–14 days and is priced higher: the 25 largest MIEs averaged 9.6% on single-family loans in Q3 2025 (CMHC), plus lender and broker fees. B is the typical first stop; private is for speed or files B won't touch. See our private mortgage vs the alternatives guide.

It depends on the tier. B-lenders generally go up to about 80% loan-to-value on an owner-occupied file; private lenders lend mainly on equity, typically up to about 65–75% on a first mortgage, with higher combined LTV only with a second, so you need meaningful equity remaining after the loan. Lower loan-to-value earns better pricing and more lender choice at every tier. We confirm your exact numbers before recommending an option.

More than a bank, deliberately and temporarily. Illustratively: a B-lender runs roughly 0.5–1.5% above A-lender pricing plus about a 1% lender fee; the 25 largest private MIEs averaged 9.6% on single-family files in Q3 2025 (CMHC), plus lender and broker fees (commonly 1–2% each). Every fee is disclosed in writing before you commit, and the cost is meant to be short-term — the exit to A-pricing is where most of it is won back.

B-lender files typically close in ~21–35 days on a clean file — almost as fast as an A-lender. Documents are similar to A: property docs, income docs, ID, mortgage statement. Most B-lenders have full electronic intake and won't require an in-branch visit.

Often, yes. Alt lenders have room on pricing, and we negotiate based on file strength, loan-to-value, credit score and competing offers. On private deals the lender fee can sometimes be reduced too. How much moves depends on the file.

Goal: 12–24 months. Most clients refinance back to A-lender pricing as credit, income, or proposal-discharge milestones are reached. We set the refinance trigger date at funding and monitor your file proactively.

Usually, at the B tier. Most B-lenders and alt-A lenders allow 30-year amortization on uninsured files; private mortgages are usually short-term and often interest-only. A longer amortization lowers monthly payments and improves cashflow during the alt period. Once you refinance to A-pricing, you can revert to 25 years or stay at 30 with most A-lenders.

Mortgages can be used to pay out CRA personal income tax, HST/GST, or corporate tax debt — see our CRA debt mortgage playbook for the full approach. Critical to handle quickly: once CRA registers a lien, your refinance options narrow dramatically.

B-lender: lender pays us, no broker fee to you in most cases (a few specialty B-lender programs carry a 0.5–1% broker fee, always disclosed in writing). Private: lender fee + broker fee (typically 1–2% each), disclosed upfront and deducted from advance with your written consent only.

If you can't refinance back to A within the term and your alt lender won't renew, we arrange another alt deal at the most competitive rate available. If your equity erodes badly, we'll recommend selling rather than over-extending. We track every maturity date so it never catches you by surprise.

B-lender mortgages report on your credit bureau like any other mortgage — paying on time builds credit. Some private mortgages don't report at all (neither helping nor hurting). We disclose reporting practice for every lender so you can plan your credit recovery.

Yes — most alt-A lenders accept 1-year self-employment with a clean income story, or stated income. Private lenders care primarily about equity. See our self-employed mortgage guide for the full BFS playbook.