A B lender mortgage comes from an alternative lender, such as Home Trust, Equitable Bank or Haventree Bank. B-lenders approve people banks turn down: the self-employed, bruised credit, high debt. In November 2026 they charge 6.0-8.5% on 1-3 year terms, plus a lender fee of about 1%. You need about 20% equity and a score near 600. Most files close in 2-3 weeks, through a mortgage broker.

What is a B lender?

A B lender is a lender that sits between the big banks and private lenders. Banks are "A" lenders. Private lenders and MICs are "C" lenders. B-lenders accept more kinds of income proof and lower credit scores than banks. They charge more to cover the extra risk.

Many B-lenders are regulated deposit-takers. Equitable Bank, Haventree Bank, RFA Bank of Canada and Bridgewater Bank are banks. Home Trust and Peoples Trust are trust companies. Most deal only through licensed mortgage brokers. You cannot walk into a branch.

Who uses a B-lender mortgage?

Self-employed borrowers whose tax returns show low income after write-offs. See the self-employed page.
Bruised credit: a score of about 600-680, or late payments in the last two years.
A discharged consumer proposal or bankruptcy, usually one to two years ago.
High debt ratios that fail the bank's limits.
Debt consolidation when the bank will not refinance. See debt consolidation mortgages.
A denied renewal at a bank or credit union. See mortgage renewal denied.

B lender vs bank vs private lender

A B-lender costs more than a bank and less than a private lender. It is the middle door.

	Bank (A)	B-lender	Private lender
Rate (November 2026)	4.5-5.5%	6.0-8.5%	7.49-10.99% interest-only
Fees	Usually none	About 1% lender fee	1-2% lender + 1-2% broker
Term	1-5 years	1-3 years	6-12 months
Credit score	About 680+	About 600+	Any
Income proof	T4s or two years of NOAs	6-12 months of bank statements OK	Equity and exit plan
Max loan-to-value	80% (95% insured purchase)	About 80%	75% first, 80% combined
Payments reduce the balance	Yes	Yes	No
Time to fund	3-6 weeks	2-3 weeks	5-12 days

What does a B-lender mortgage cost? A worked example

Illustrative example. A Calgary couple owns a $750,000 home. They need a $500,000 refinance, 67% loan-to-value. One of them became self-employed last year.

	Bank	B-lender	Private first
Rate and term	4.89%, 5-year fixed	6.99%, 2-year fixed	8.99%, 12 months
Amortization	25 years	30 years	Interest-only
Fees and legal	$1,500	$6,500	$17,500
Monthly payment	$2,877	$3,290	$3,746
Year-one interest plus fees	$25,473	$40,790	$62,450
APR over the term	about 5.0%	about 7.6%	about 12.7%

B-lender fee: 1% ($5,000) plus $1,500 legal. Private: 1.5% lender fee, 1.5% broker fee, $2,500 legal and appraisal. Payments use Canadian semi-annual compounding.

The B-lender costs about $15,000 more than the bank in year one. It costs about $21,700 less than the private loan. That is why a B-lender is worth a few extra weeks of paperwork.

B lenders in Canada

These B-lenders lend in BC, Alberta and Ontario. Each was checked on its own site on 4 November 2026.

Lender	Head office	Type	What it publishes
Home Trust	Toronto	Trust company	Classic program: minimum 20% down
Equitable Bank	Toronto	Bank	Up to 4 units
Haventree Bank	Toronto	Bank	Improvements mortgage adds up to $100,000
MCAN Home	Toronto	Alternative lender	Alternative series for scores under 500
RFA Bank of Canada	Toronto	Bank	National lender
Bridgewater Bank	Calgary	Bank	Works with select brokers
Peoples Group	Vancouver	Trust company	Strong in BC
Community Trust	Toronto	Trust company	Ontario and BC
First National (Excalibur)	Toronto	Monoline	Excalibur is its alternative program
Strive Capital	Toronto	Monoline	Prime and alternative
Glasslake Funding	Toronto	Alternative lender	1-7 year terms

Programs change often. A broker checks the current guidelines before sending your file. See the full lender list.

How do you qualify for a B lender mortgage?

You need equity, a fair score and a believable income. Bring these:

About 20% equity or a 20% down payment.
A credit score near 600 or higher. Some programs go lower.
Income proof: pay stubs, NOAs, or 6-12 months of business bank statements.
Taxes filed and paid. CRA debt is usually paid out at closing.
An appraisal, ordered through the lender.

Federally regulated B-lenders still apply the OSFI stress test. They are more flexible about what counts as income.

How long does a B-lender mortgage take?

Most files fund in 2-3 weeks.

Day 0

Apply

Send your mortgage statement, ID and income documents to a broker.

Days 2-5

Approval in principle

The lender reviews credit, income and the property.

Days 5-12

Appraisal and conditions

The appraisal is done. You send any missing documents.

Days 14-21

Sign and fund

You sign with a lawyer. The lender pays out the old mortgage.

B lender vs private lender: which one do you need?

Choose a B-lender when

You have 2-3 weeks. Your score is near 600. You can show income on bank statements. You want payments that pay down the loan.

Choose a private lender when

You must close in days. Your score is low or you have recent arrears. Income is hard to show. Then use 12 months to get back to a B-lender.

The way back to a bank

A B-lender is a step, not a home. Take a 1-2 year term. Pay on time. Keep card balances low. File your taxes on time. At renewal, a bank may take you back at 4.5-5.5%. Since 21 November 2024, an uninsured mortgage that switches lenders at renewal does not need the stress test, if the amount and amortization stay the same.

B lender mortgage questions

Is a B lender safe?

Yes. Many B-lenders are federally regulated banks and trust companies. Your mortgage terms are in writing, like a bank mortgage. The main risk is cost, not safety.

What credit score do B lenders need?

Most want about 600 or more. Some accept lower scores with more equity. MCAN Home publishes a program for scores under 500.

Do B lenders charge fees?

Most charge a lender fee of about 1% of the loan. It is usually added to the mortgage. Many B-lender files carry no broker fee, because the lender pays the broker.

Can I get a B lender mortgage with a consumer proposal?

Yes, usually after the proposal is paid. Some B-lenders lend during an active proposal if you have 25% or more equity. See the consumer proposal page.

What is the difference between an alternative lender and a private lender?

"Alternative lender" usually means a B-lender: an institution with set programs and 1-3 year terms. A private lender is an individual, fund or MIC. It lends on equity for 6-12 months at a higher cost.

Sources. Lender sites (Home Trust, Equitable Bank, Haventree Bank, MCAN Home, RFA Bank of Canada, Bridgewater Bank, Peoples Group, Community Trust, First National, Strive Capital, Glasslake Funding), checked 4 November 2026 · OSFI Guideline B-20 · OSFI, removal of the minimum qualifying rate for uninsured straight switches, effective 21 November 2024 · Mortgage Directory private rates, October 2026.

Real people, not a call centre

Talk it through with a licensed broker before you decide

Tell us what is going on in a few lines. We call you back the same day with what lenders will say, what it costs in dollars, and how you get back to a bank. If private is the wrong tool, we say so.