Products

Alternative lending

Umbrella term for any non-bank financing — B lenders, monolines with relaxed criteria, private lenders. Used when your file doesn't fit prime A-lender boxes.

Alternative lending is the spectrum that opens up when a bank says no: B lenders (rate premium, common-sense underwriting), specialized monolines, and private lenders (equity-based, fast, short-term). It exists precisely for self-employed, credit-bruised, newcomer, and unusual-property files.

It's priced for the added flexibility — higher rates and usually a lender/broker fee — and almost always framed as temporary. The point is to solve the immediate problem and follow a clear plan back to prime A-lender pricing within a term or two.

Choosing the right rung (B vs private) and lining up the exit is exactly where broker experience pays for itself, because a wrong placement gets expensive fast.

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A lender

A bank or monoline that prices its lowest rates and tightest underwriting against borrowers who fit prime credit, income, and property criteria. The big banks (RBC, TD, Scotia, BMO, CIBC, NB) and major monolines (MCAP, First National, MERIX) are A lenders.

B lender

An alternative ("alt-A") lender that prices higher than A lenders but flexes on credit history, income documentation, property condition, or self-employed earnings. Examples include the alternative-lending programs of Equitable Bank and Home Trust.

Bridge financing

Short-term loan that lets you close on a new home before the sale of your existing one funds. Priced at prime + premium, secured against both properties, typically up to 90-120 days.

Closed mortgage

A mortgage that limits how much extra you can prepay each year and charges a penalty if you break the term early. Almost all standard Canadian mortgages are closed because the rates are materially lower than open.

Collateral charge mortgage

A mortgage registered against your property for more than the actual loan amount, letting you increase the limit later without re-registering. Common at TD and Scotia. Makes inter-lender switches harder mid-term.

Conventional mortgage

A mortgage with at least 20% down. No mortgage default insurance required. Pricing is typically higher than insured because the lender carries more of the credit risk.

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