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Alternative Lending

Bad Credit & B-Lender Mortgages in Ontario

A bank decline is a decline from one lender's rulebook — not from the market. We place bruised-credit files across the alternative tier with the costs stated up front and a written exit plan back to prime rates.

What We Actually Do

Ontario lending is a spectrum: A-lenders for clean files, B-lenders that price flexibility into the rate for bruised credit or high ratios, and private lenders at the top of the cost curve for short, sharp problems. As Level 2 agents, we're licensed for the whole spectrum — which matters, because Level 1 agents and bank branches simply aren't authorized to arrange the alternative and private placements this work requires.

Typical files we place: credit scores below bank cutoffs, a consumer proposal or bankruptcy (discharged, with some re-established credit — and sometimes during), collections or missed payments with a real story behind them, and debt ratios modestly past the standard caps. B-lenders read the story; banks mostly read the numbers.

The Costs, Stated Plainly

Expect roughly 1–2% above A-lender rates, a lender or brokerage fee commonly around 1% of the mortgage (always disclosed in writing before you commit), and 20–25%+ down, since alternative mortgages are generally uninsured. Private mortgages cost more again and run about a year, often interest-only — a tool for bridging, never a home. If anyone quotes you alternative lending without those three numbers in writing, keep walking.

The Exit Plan Is the Product

The difference between a stepping stone and a trap is the 12–24 month plan back to prime, and every placement we make ships with one: protect the mortgage payment above everything, rebuild credit deliberately (one or two cards, under 30% of limit, never late), and start the refinance conversation six months before the alternative term ends — never renew by default. What not to do matters just as much: no payday loans, no new debt to "look stronger," no unlicensed lenders. Anyone arranging mortgages in Ontario must be licensed — verify us or anyone else on the FSRA registry.

The full mechanics — proposal timelines, score realities, private-lending rules — are in our guide to how alternative lending actually works.

Frequently Asked Questions

Can I get a mortgage after a consumer proposal?

Yes. B-lender options exist soon after — sometimes during — a proposal, with larger down payments. A-lender options generally return once the proposal is paid, credit is re-established, and roughly two years have passed since completion, varying by lender.

What credit score do I need?

There's no single cutoff — B-lenders weigh the whole file, and many work with scores well below bank minimums when equity, income, and the story support it. Score affects pricing more than eligibility.

How long will I be stuck at higher rates?

Plan for one term — one to three years — with the exit plan running from day one. Staying longer is sometimes right, but it should be a priced decision at renewal, never a default.

Is this regulated?

Yes. The alternative tier includes federally and provincially regulated lenders, and everyone arranging the mortgage must hold an FSRA licence regardless of lender type. We provide Level 2 agent services through Get A Better Mortgage, FSRA Licence #10874 — verifiable on the public registry.

Turned Down by the Bank?

Tell us what happened — three minutes online, no judgment, no contact info until the end. We'll map your real options and the plan back to prime rates.

Free Mortgage Review
Level 2 Mortgage Agent services provided through Get A Better Mortgage, FSRA Licence #10874. All rates on approved credit (O.A.C.) and subject to qualification. Alternative and private mortgages carry higher costs and risks; ranges shown are typical, not offers. General information, not financial advice — review terms carefully with a licensed professional.
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