Alternative prime lenders
B-lenders (alt-A)
Federally or provincially regulated lenders that fund borrowers outside prime guidelines — typically because of income complexity or credit bruising. Higher rates and lender fees.
Best for
- Self-employed borrowers using stated-income programs
- Borrowers with recent credit events being repaired
- New-to-Canada borrowers without long Canadian credit history
Not best for
- Borrowers who qualify at prime — the rate and fee cost is not warranted
- Borrowers with no exit strategy back to a prime lender within 1–3 years
Underwriting character
Common-sense underwriting with documented exception authority. Faster than the Big Six on complex files.
Document expectations
- Bank statements (12–24 months) for stated-income files
- Down-payment proof on the same standards as prime
- Letter of explanation for credit events
Rate character
Rates typically 1–2.5% above prime plus a lender fee (commonly 1% of the mortgage amount).
Other lender categories
Written and reviewed by the Canadian Mortgage Compass Editorial Desk. This page is general information for Canadian readers and is not mortgage, legal, tax, or financial advice, and not an offer of credit. Rules, rates, and lender policies change; confirm your own situation with a licensed mortgage professional in your province. Editorial policy · Corrections