Alternative & Bad Credit Mortgage
B-lender programs and a real path back to A lending. We're not here to judge your credit history — we're here to work with where you are.
Talk to Us HonestlyCanadian mortgage lending isn't binary. There's a full spectrum from Schedule A banks at the top (lowest rates, strictest criteria) through B lenders and alternative lenders in the middle (higher rates, more flexibility) down to private lenders at the bottom (highest rates, equity-based, minimum credit consideration).
Most brokers frame the conversation as "you either qualify for a bank or you need private lending." That misses the B-lender space entirely, which is where many clients with credit challenges actually belong. B lenders charge 0.5-2% more than prime A-lender rates. Private lenders charge 8-14%. The difference between "your situation is a B deal" and "your situation needs private" is significant money.
We work across all three segments and will place you in the right category for your file — not the easiest one to arrange.
B lenders are regulated, institutional lenders. They're not fly-by-night operations. They accept files that major banks won't — but they still underwrite. Here's what makes a B-lender file work:
These are significant credit events, but they're not permanent. The question isn't whether you had one — it's where you are in the post-event timeline and what you've done since.
During an active consumer proposal: most institutional lenders won't approve you. There are some exceptions for renewal situations with your existing lender. Private lending is typically the only option if you need to purchase mid-proposal.
After discharge and full payment of the proposal: B lenders will often consider you fairly quickly. Two years post-discharge with rebuilt credit history opens more doors. Three years post-discharge and you're knocking on A-lender territory again, particularly if you have a strong income story and equity position.
Bankruptcy follows a similar timeline but with a longer bureau impact — 6 years from discharge for a first bankruptcy. The practical lender timeline is different from the bureau timeline; B lenders often work with clients 2-3 years post-discharge.
Getting a B-lender mortgage is one step. The goal should be qualifying for A-lender rates at your next renewal, which will be meaningfully cheaper. That requires a deliberate credit rebuild program during your B-lender term.
We'll lay out what a realistic 2-3 year rebuild looks like: secured credit products, payment discipline, avoiding new collections, and how to handle any remaining derogatory marks as they age. This isn't financial advice — it's practical framing of what your credit file needs to look like to move up the lender spectrum at renewal.
A note on self-reporting: tell us everything upfront. The worst outcome is discovering a credit issue during underwriting that delays or kills an approval. We're not here to judge how you got to where you are — we're here to work with it. Surprises mid-file are harder to handle than upfront disclosure.
No judgment, no lecture. We'll assess your file honestly and tell you what's actually available.
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Private Lending Options →Common questions
A lenders want 620-680 minimum. B lenders work from around 550 upward. Private lenders focus on equity and are less score-dependent. The score is one factor — the reason behind it, the trend, and what's happening now all matter to a thoughtful underwriter.
Yes, with the right timing. B lenders will often consider you after discharge and full payment. Two years post-discharge with rebuilt credit opens more options. Three years post-discharge and A-lender territory starts to reopen, particularly with strong equity and income.
B lenders are regulated institutional lenders who accept files that major banks won't — lower credit scores, recent credit events, alternative income. Rates are typically 0.5-2% higher than prime A-lender rates. They're meaningfully cheaper than private lending (8-14%) and provide a real path back to A-lender rates at renewal with credit rebuild.
Late payments and collections: 6 years. Consumer proposal: 3 years after full payment. First bankruptcy: 6 years after discharge. The bureau impact reduces as time passes and as you build positive history on top of negative entries. Practical lender timelines are often shorter than the full bureau reporting period.
Tell us where you are. We'll tell you what's possible and what the path forward looks like.