Chartered banks
Banks generally will not take second position behind another lender. Their equity product is a HELOC, which they usually want in first position alongside their own mortgage, with bank-grade credit and provable income. If you qualify, that is the cheapest route.
B lenders and credit unions
Alternative lenders are more flexible on credit and self-employed income but still want documentation and a reasonable file. They price below private money and are worth checking before anyone goes straight to a private lender.
Mortgage investment corporations
MICs pool investor capital and lend on real estate. They are fast, equity-focused, and comfortable in second position on GTA properties. Terms are short, usually interest-only, with a lender fee at closing.
Private investors
Individual lenders fund the files nobody else will touch: arrears, power of sale, unusual properties, tight timelines. They move fastest and cost the most, and the fit has to be right.
How to choose
Work down the ladder, not across it. Start with the cheapest lender who will realistically approve you and move down only as far as you need to. A broker who submits to several categories at once compresses that into days instead of months.
Frequently asked questions
- Can I go to a second mortgage lender directly?
- Most MICs and private lenders in Ontario only accept files through licensed mortgage brokers, and going direct to one lender means no competing offers.
- Does applying to several lenders hurt my credit?
- A broker pulls your credit once and shares the same report with lenders, so shopping the file does not mean repeated hits.