Lenders
So, who is actually giving out these mortgages to home buyers? Mortgage lending in Canada is done by a variety of financial institutions including, but not limited to, banks, credit unions and unregulated lenders.
Lenders fall into two major categories.
- Lenders in the higher credit quality mortgage market offer a variety of mortgage products, often with competitive low mortgage rates.

- The ‘B’ lenders specialize in customers that do not qualify for prime, or A, quality mortgages. B lenders (aka: Sub-Prime Lenders) charge higher interest rates and usually require larger down payments from their customers. B mortgages tend to have terms of only 1 or 2 years. Usually, the objective for the borrower is to make their mortgage payments and improve their credit score, allowing them to potentially qualify for a prime mortgage once their B mortgage matures.
About The Author
Don Scott
Don Scott is the founder of a challenger mortgage brokerage that is focused on improving access to mortgages. We can eliminate traditional biases and market restrictions through the use of technology to deliver a mortgage experience focused on the customer. Frankly, getting a mortgage doesn't have to be stressful.
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