What's an Alternative Lender? 

Imagine you need a loan for your house, but the big banks say "No." 

• The big, main banks (like RBC or BMO) are called Traditional Lenders. They have very strict rules for who can get a mortgage.

• If you don't fit those strict rules, you can go to an Alternative Lender!

An Alternative Lender is a mortgage company or financial group (not one of the main banks) that has more flexible rules.

Think of it like this: If the bank's rules are like a coloring book, Alternative Lenders let you color outside the lines! 

Why might you need an Alternative Lender in Ontario?

• Self-Employed: You own your own business (like a farmer  or a website designer ) and your income is different every month.

• Credit Score: Your "borrowing report card" (credit score) isn't perfect right now.

• Special Properties: You're buying a unique property the big banks don't usually like.

Here's the key:

Alternative Lenders are often a stepping stone. They help you get the mortgage you need now, giving you time to improve your finances and hopefully switch to a cheaper Traditional Lender later.

• Because they take a bigger risk, their loans often have slightly higher interest rates (the fee for borrowing the money).

• Their loan terms are usually shorter (like 1 to 5 years) so you can fix your situation faster!

Want to Learn More?

Got questions or want to see if this could work for you?

Talk to our team! We're happy to help.