B-lender or private —
choose the right tier,
then plan your exit.
When a bank says no, the next step is either a regulated B-lender or an investor-funded private mortgage — and the two are not interchangeable. We compare them on score, LTV, rate, fees and exit using published 2026 figures.
Four things that decide
which tier fits your file.
The difference resolves once you know where the money comes from and what that changes downstream.
Regulated institution vs investor capital
A B-lender lends its own deposits and underwrites income and credit. A private lender deploys investor money and underwrites the property first — which changes every other term that follows.
Scores in the 500s — or score-agnostic
Some B-lenders consider scores in the 500s with 20% equity. Private lenders largely price the property, not the score — making them the tier for no-credit or badly damaged files.
Rate plus fees — not rate alone
Private lenders averaged 9.6% on single-family lending in Q3 2025 (CMHC) plus 2–4% in combined fees. B-lenders sit below that rate with ~1% lender fees. Always compare total cost to your exit date.
Short by design — plan the exit on day one
B-lender terms run 3 months to 3 years; private terms run 1–3 years. Neither is a permanent home. The term is the deadline that keeps the arrangement honest — diarise the exit when you sign.
Matched, funded,
and on a path out.
The tier matters. The exit plan matters more.
We build both before you sign anything.
We assess your file
Score, income proof, equity, and timeline. Five minutes of information tells us whether you belong in a B-lender, a private first, or a private second — and what needs to change before you can step up.
We match you to the right tier
If your score is roughly 500+ with 20% down and documentable income, we target B-lenders. If you need to close in days, your income cannot be documented, or the property is unusual, we go private — and shop multiple MICs and investors.
We build your exit into the mortgage
We write out what replaces this mortgage and when. Twelve to eighteen months of two clean tradelines and sub-30% utilization moves most files to B-lender territory. From there, the A-lender refinance typically follows in 12–24 months.
Six files —
one right answer each.
Tap any situation to see which tier fits and why.
If you’re…Your credit score is bruised but you have 20%+ down or equity
Your credit score is bruised but you have 20%+ down or equity
A B-lender is almost certainly the right tier. Some B-lenders consider scores in the 500s on owner-occupied files. You pay a rate premium — not a private rate. Most borrowers in this band get quoted private rates they didn't need to pay.
Get matched to a B-lenderIf you’re…You need to close in days, not weeks
You need to close in days, not weeks
Private lenders can fund in 72 hours on a clean property. Institutional underwriting takes weeks. If the deal's timeline is the constraint, private is often the only path — and we shop it to multiple lenders.
Start an urgent fileIf you’re…You're inside an active bankruptcy or consumer proposal
You're inside an active bankruptcy or consumer proposal
Institutional lenders will not approve you while the insolvency is active. Private lenders underwrite the equity, not the credit event. With a credible exit plan and enough equity, a private approval is realistic.
See proposal mortgage optionsIf you’re…Your income genuinely cannot be documented right now
Your income genuinely cannot be documented right now
Private lenders ask whether you can carry the payment — not whether your T1 ratios pass. Cash flow evidence (bank statements, rental rolls) can substitute for standard income proof when the equity is there.
Explore private optionsIf you’re…You have a low-rate first mortgage and need equity
You have a low-rate first mortgage and need equity
Breaking a good first to access equity is often the more expensive move. A private second mortgage keeps your existing rate intact and taps the equity independently. We model both paths before recommending.
Model second vs refinanceIf you’re…You're within a few months of A-lender qualification
You're within a few months of A-lender qualification
Waiting a quarter to save a tier is frequently the highest-value option on the table. We'll tell you what changes, when it changes, and how close you actually are — without pushing you into a product you don't need.
Get a timeline reviewEvery term that matters —
sourced and compared.
Published regulator, insurer and CMHC figures. Ranges are typical, not quotes — your file prices on its own facts.
| Factor | B-Lender (Alt-A) | Private Lender |
|---|---|---|
| Who lends | Regulated institution — trust company, monoline, credit union | Individual investor, syndicate, or mortgage investment corporation |
| Min. credit score | Lender-specific; some consider scores in the 500s | Largely score-agnostic — property-driven |
| Income proof | Required but flexible (bank statements, NOAs, stated-plus-support) | Light — ability to carry the payment matters more than ratio math |
| Maximum LTV | Generally up to 80%; 65% on non-conforming files at federally regulated lenders | Commonly 65–75% on a first; industry averaged 58.0% in Q3 2025 |
| Typical rate | Above A-lender; premium tracks score, equity and income proof | Averaged 9.6% on single-family lending in Q3 2025 |
| Fees | ~1% lender fee (commonly) | ~1–2% lender fee + ~1–2% broker fee (2–4% combined), paid by you |
| Term | Typically 3 months to 3 years | Typically 1 to 3 years |
| Best for | Credit bruise, self-employment, or ratios a bank won't stretch — with 20% down | Recent insolvency, urgent timelines, or a file no lender will score |
Sources: CMHC Residential Mortgage Industry Report Spring 2026 (private rate 9.6% and LTV 58.0%, Q3 2025); OSFI Guideline B-20 (65% non-conforming limit); FSRA (property-based underwriting, higher fees, short term). Score, fee and term ranges are placement experience, not published figures.
Common questions,
clear answers.
Score thresholds, LTV limits, real costs, delinquency data, and exit mechanics — answered with sources.
What is the difference between a B-lender and a private mortgage?
A B-lender is a regulated financial institution — a trust company, a monoline, or a credit union — that lends its own deposits and underwrites your income and credit, just with looser rules than a bank. A private lender is an individual, a syndicate, or a mortgage investment corporation lending investor capital, underwriting the property first and the borrower second; FSRA notes private lenders often lend based on the property's value instead of your income (FSRA).
Is a B-lender cheaper than a private lender?
Almost always, yes. B-lender pricing sits above A-lender rates and, in our placement experience, commonly adds a lender fee of about 1% of the mortgage amount. Private lending is materially more expensive: the top 25 mortgage investment entities charged an average 9.6% on single-family lending in Q3 2025 (CMHC Residential Mortgage Industry Report, Spring 2026), and private fees are often higher than a traditional mortgage's (FSRA), a lender fee of ~1–2% plus a broker fee of ~1–2% (typically 2–4% combined).
What credit score do you need for a B-lender?
Lower than most people assume, and it's lender-specific. In our placement experience, some B-lenders will consider scores in the 500s on owner-occupied files, generally with at least 20% down or equity, and price the risk into the rate. For context, Equifax Canada describes 660 to 900 as generally good to excellent (Equifax Canada).
Can you get a private mortgage with no income?
Often, yes — with enough equity. Private lenders underwrite the property's value and marketability far more than the borrower's income, so a file with no provable income but substantial equity can fund where a B-lender would decline. You still need a credible plan to make the payments and to exit the mortgage at the end of the term.
How long is a B-lender or private mortgage term?
Both are short by design. Typically, B-lender terms run three months to three years and private mortgages one to three years, and FSRA stresses that these mortgages are supposed to be a short-term solution with a realistic exit strategy (FSRA). Neither is meant to be held to a 25-year amortization: the term is the built-in deadline for your exit plan.
How do you get from a private mortgage back to a bank?
In two moves: refinance the private into a B-lender once the file is stable, then into an A-lender once your credit qualifies. Keep credit utilization under 30% of your limit throughout (FCAC). If you need insured financing after a bankruptcy or proposal, insurers require two years since discharge and two years of re-established credit (Sagen underwriting standards), so build the timeline around that.
Are private mortgages risky?
They carry real risk and the data shows it: the 90+ day delinquency rate on mortgage investment entity lending reached 1.96% in Q3 2025, the fastest-rising of any lender type (CMHC Residential Mortgage Industry Report, Spring 2026), and Ontario's regulator keeps private mortgage brokering as a supervisory priority (FSRA, Private Residential Mortgage Lending in Ontario report 2024). A private mortgage is defensible as a bridge with a dated exit. It is not defensible as a place to sit.
How common are private mortgages in Ontario?
Far more common than most borrowers expect. Ontario recorded 65,233 private residential mortgages worth $32.0 billion in 2024 — 15.8% of every mortgage registered in the province by count, and 12.5% by dollar value (FSRA, Private Residential Mortgage Lending in Ontario report 2024). Roughly one Ontario mortgage in six was private.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Find a specialist in your city
B-lender and private mortgage placement varies by market. Property values, lender coverage, and MIC concentration differ across the GTA and Ontario — where you buy shapes which lenders we can reach and what your file is worth to them.