Alternative Mortgage Lenders in Ontario & Canada
Alternative Mortgage Lenders for When the Bank Says No
When a bank declines you over credit, income, or the stress test, alternative mortgage lenders look at the whole picture instead. They weigh the equity in your home far more heavily than a credit score, which is how homeowners get a yes where the bank gave a no. Turnedaway.ca matches you to the right one. Learn more about B lenders, private mortgages, and home equity loans.
or call 1-855-668-3074
Approvals in as fast as 24 hours · Approved on equity, not just credit · Financing from $25,000
Alternative mortgage lenders are lenders outside the big banks, including B lenders, credit unions, monoline lenders, mortgage investment corporations, and private lenders. They approve based on the equity in your home and the strength of the overall file rather than a credit score alone, which is why they can finance homeowners the banks decline. A mortgage broker matches you to the right one for your situation.
24 hrs
Typical approval window through Turnedaway.ca, versus weeks of paperwork at a bank.
80%
Maximum loan-to-value we arrange, leaving real equity protected as a buffer.
5+
Types of alternative lenders, from B lenders and credit unions to private lenders.
$25K
Financing available from, based on the equity you have built in your home.
For how the mortgage stress test works, see the Government of Canada.
Why Homeowners Turn to Alternative Mortgage Lenders
Banks follow rigid rules. They want strong credit, two years of provable income, and a clean pass on the federal mortgage stress test. Plenty of capable homeowners fall outside that box, through self-employment, a credit dip, a recent setback, or income from non-traditional sources. When that happens, the bank often declines, even when there is real equity in the home.
Alternative mortgage lenders work differently. They place far more weight on the equity in your property and the overall strength of your file than on a credit score alone, and many do not apply the stress test the way a federally regulated bank must. That flexibility is what makes financing possible when the bank says no. You can read how the stress test affects borrowers at the Financial Consumer Agency of Canada.
At Turnedaway.ca, we have helped thousands of clients the banks turned away. We work with a wide network of alternative lenders across Ontario and most of Canada, which is what lets us match you to the one that fits your situation rather than leaving you to find them alone.
The Types of Alternative Mortgage Lenders
"Alternative lender" is an umbrella term. Underneath it sit several different kinds of lenders, each with its own place on the spectrum between the big banks and private lending. Here is how they compare.
| Lender Type | What They Are | Best Suited For |
|---|---|---|
| B Lenders | Regulated lenders with more flexible criteria than banks | Bruised credit or income that does not fit a bank's box |
| Credit Unions | Member-owned, provincially regulated lenders | Borrowers wanting a community-based alternative to a bank |
| Monoline Lenders | Mortgage-only lenders that work through brokers | Competitive terms for borrowers who still qualify broadly |
| Mortgage Investment Corporations | Pooled-investor lenders focused on equity | Equity-based deals the banks will not touch |
| Private Lenders | Individuals or firms lending mainly on equity | Short-term, equity-first solutions when speed matters |
The big banks are the "A lenders." Everything in this table is an alternative to them. A broker's job is to know which one fits your file. Learn more about B lenders and private mortgage lenders.
A Lenders vs. Alternative Lenders: How They Differ
The core difference is what each lender weighs most. A bank leads with your credit score and provable income. An alternative lender leads with your equity and the overall strength of your file. This table is a general guide.
| Feature | A Lenders (Big Banks) | Alternative Lenders |
|---|---|---|
| Main approval factor | Credit score and provable income | Equity and overall file strength |
| Mortgage stress test | Required | Often not applied the same way |
| Income flexibility | Strict, two years usually required | Considers self-employed and non-traditional income |
| Interest rate | Lower, for those who qualify | Moderately higher, reflecting flexibility |
| Typical use | Long-term financing for qualified borrowers | A bridge to rebuild and return to bank rates |
Alternative lending usually costs a little more than a bank, but for a homeowner the bank declined, it is often the difference between keeping a home and losing one. We build every file with an exit plan back to lower-cost financing.
Who Is a Good Fit for an Alternative Lender?
There is no single profile. Alternative lenders evaluate each file on its own merits, which is exactly why they work for borrowers a bank turned down. You may be a good fit if any of these apply.
Declined at Renewal
If your bank refused to renew despite on-time payments, an alternative lender can take over so you keep your home.
Self-Employed or Commission-Based
Income that does not fit a bank's template is no obstacle. See our self-employed mortgage options.
Bruised or Recovering Credit
A low score, or rebuilding after a consumer proposal, does not put you out of reach.
Failed the Stress Test
Many alternative lenders do not apply the federal stress test the way a bank must, which opens the door for capable borrowers.
At Least 20% Equity in Your Home
Because all of our lending stays within an 80% loan-to-value cap, you need meaningful equity in the property.
Carrying Debt or Tax Arrears
Equity can consolidate debt or clear CRA debts and liens that block your other options.
or call 1-855-668-3074
What Alternative Mortgage Lenders Can Finance
Alternative lenders offer most of the same products as a bank, plus solutions built for difficult situations. These are the most common.
🏠
Borrow against the equity you have built, approved on your property rather than your credit alone.
The Honest Pros and Cons of Alternative Lending
The Advantages
Approval is based on equity and the whole file, so bruised credit or non-traditional income is not a dealbreaker.
Many lenders do not apply the stress test the way a bank must, which helps capable borrowers qualify.
Terms are often shorter, giving you time to rebuild and move back to a lower-rate bank mortgage.
The Trade-Offs
Interest rates and fees are moderately higher than a bank, reflecting the added flexibility and risk.
A minimum of 20% equity or down payment is required, since all of our lending stays within an 80% LTV cap.
It is meant as a bridge, not a permanent solution, with a plan to return to conventional financing.
We level with you about both sides. Alternative lending costs more than a bank, but for a homeowner the bank declined, it is often the difference between keeping a home and losing it.
Our Commitment to Responsible Lending
It would be easy to promise the world to someone who feels out of options. We will not do that. Turnedaway.ca is a licensed mortgage brokerage, and our job is to match you with the right alternative lender and give you honest guidance, not just a transaction.
We do not arrange financing above 80% loan-to-value, with no exceptions. Property values can fall, and when a homeowner is already in financial difficulty, taking them to the edge of their equity creates risk we are not willing to accept on their behalf. If your request goes over the limit, we will help you restructure it rather than stretch you thin. Every deal leaves meaningful equity in place as a buffer, with an exit strategy built in to move you back toward lower-cost financing.
The full cost of any solution, including the interest rate, lender fee, broker fee, legal fees, and appraisal, is disclosed in writing through a formal Cost of Credit Disclosure for your specific deal before you commit.
or call 1-855-668-3074
Real Client Results
Every situation is different. Here are three examples of how Turnedaway.ca matched homeowners to an alternative lender when the banks said no.
Case Study 1 | Declined at Renewal
A New Mortgage After the Bank Refused to Renew
A Durham Region homeowner had experienced several credit challenges over the previous two years and was declined by their bank at renewal, despite being current on their mortgage payments. With a home valued at approximately $750,000 and a mortgage balance of approximately $480,000, financing was arranged through an alternative lender at approximately 78% loan-to-value.
Result: The homeowner secured a new mortgage, remained in their home, and gained time to improve their credit with a plan to return to conventional financing in the future.
Case Study 2 | Self-Employed Income Challenges
Approved on the Strength of the File, Not the Tax Return
An Ontario business owner had strong equity and cash flow, but significant tax write-offs reduced their reported income. Several traditional lenders declined the application despite years of successful self-employment. With a home valued at approximately $900,000 and a mortgage balance of approximately $520,000, an alternative lender approved financing to access approximately $100,000 while keeping total financing below 80% loan-to-value.
Result: The homeowner consolidated debt, improved cash flow, and secured financing based on the overall strength of the file rather than tax-return income alone.
Case Study 3 | Recent Credit Recovery
Rebuilding After a Consumer Proposal
A homeowner had recently completed a consumer proposal and was rebuilding their credit. Although their finances had stabilized, they did not yet meet the lending criteria required by major banks. With a home valued at approximately $680,000 and a mortgage balance of approximately $360,000, an alternative mortgage solution was arranged to access approximately $70,000 while remaining under 80% loan-to-value.
Result: The homeowner accessed needed funds, continued rebuilding credit, and established a clear path toward qualifying for traditional bank financing in the future.
or call 1-855-668-3074
Where We Serve
Turnedaway.ca matches homeowners to alternative lenders across Canada. The cities below represent areas we serve regularly, but they are not an exhaustive list. We work with homeowners in every province and territory with the exception of Quebec, Newfoundland, Yukon, the Northwest Territories, and Nunavut.
Financing available from $25,000. Call us at 1-855-668-3074 or get started online today.
Frequently Asked Questions About Alternative Mortgage Lenders
What are alternative mortgage lenders?
Alternative mortgage lenders are lenders outside the big banks, including B lenders, credit unions, monoline lenders, mortgage investment corporations, and private lenders. They approve based on equity and the strength of the overall file rather than a credit score alone, which is why they can finance homeowners the banks decline.
How are they different from a bank?
A bank leads with your credit score and provable income and applies the federal stress test. An alternative lender leads with your equity and the whole file, and many do not apply the stress test the same way, which is what makes approval possible when a bank says no.
Are alternative lender rates higher?
Moderately, yes. The rate reflects the added flexibility and risk. Alternative lending is meant as a bridge while you rebuild, with an exit plan to return to lower-cost bank financing when you qualify.
Do alternative lenders check credit?
Some review credit, but it is not the deciding factor the way it is at a bank. With enough equity, approval is based primarily on your property and overall file, so bruised or recovering credit is not a dealbreaker.
How much down payment or equity do I need?
For our program, a minimum of 20%, since all of our lending stays within an 80% loan-to-value cap. That cap protects you by keeping real equity in the home as a buffer.
Do I have to find the lender myself?
No. Sorting through alternative lenders alone is difficult and time-consuming. As a licensed brokerage, we know which lenders fit which situations and match you to the right one, then negotiate the terms on your behalf.
Can I switch back to a bank later?
Yes, and that is the goal. We build an exit plan into every file so that as your credit and income strengthen, you have a clear path to refinance into conventional financing.
What does an alternative mortgage cost?
The full cost includes the interest rate, lender fee, broker fee, legal fees, and in most cases an appraisal. We provide a written Cost of Credit Disclosure before you commit, and we subsidize appraisal costs wherever possible. For a general overview, visit Canada.ca.
Who is a good candidate?
Homeowners declined at renewal, the self-employed, those with bruised or recovering credit, anyone who failed the stress test, and homeowners carrying debt or tax arrears. If you own a home with equity and a bank said no, it is worth exploring.
How fast can I get approved?
Approvals are often available in as fast as 24 hours, with most files closing within 5 to 10 business days. Apply online to get started.
Find the Right Alternative Lender for Your Situation
If a bank turned you down, the right alternative lender may still say yes. Apply today and get a response within 24 hours, with no obligation and full transparency on cost.
Get Approved Nowor call 1-855-668-3074