Beyond the banks
Alternative Mortgage Solutions, Explained Plainly
Alternative lenders sit between traditional banks and private lenders. They apply different guidelines — and they cost more. Both facts matter.
Takes about two minutes. No obligation. No judgment.
Licensed in Ontario
Phil Cragg, Mortgage Agent, Licence #11000073 · Mortgage Outlet Inc., Brokerage #12628
Confidential by design
No credit check to start, and no documents requested through this website.
15 years, across Ontario
Office in Toronto. Clients across the province served by phone, video, and secure document handling.
What this actually means
Alternative lenders — sometimes called B lenders — are regulated institutions that lend outside traditional guidelines. They tend to place more weight on the property, the equity position, and demonstrated ability to pay, and less on rigid income and credit rules.
That flexibility is priced. Expect a higher interest rate than prime lending, and in many cases a lender fee, a brokerage fee, and a shorter term of one to three years.
For most borrowers, alternative financing works best as a defined stage rather than a destination: a term used to stabilise the file, with a realistic plan to return to traditional lending at renewal.
Situations we see most often
- Your income is real but hard to document in the format a bank requires.
- A credit event is recent enough that traditional guidelines exclude it.
- You need financing on a timeline traditional underwriting cannot meet.
- The property has features that traditional lenders will not finance.
- You need a defined bridge back to traditional lending later.
Possible pathways and their trade-offs
Alternative first mortgage
A full first mortgage from an alternative lender, typically with a one to three year term.
Trade-off: Higher rate than prime, plus lender and brokerage fees. Requires a plan for what happens at maturity.
Alternative with an exit plan
The same financing paired with a written plan of credit, income, or equity actions intended to support a move back to traditional lending.
Trade-off: The plan requires follow-through, and a future traditional approval cannot be guaranteed.
Wait and prepare
Where the cost of alternative financing outweighs the benefit, waiting may be the more suitable recommendation.
Trade-off: Delays the objective and may mean missing an opportunity.
Documents usually involved
Nothing is uploaded through this website. Documents are only requested later, through an approved secure process.
- Recent proof of income appropriate to how you are paid
- Mortgage statement or purchase agreement, as applicable
- Property tax bill and condo fee statement, if applicable
- Current debt balances
- Explanation letter for any credit events, where relevant
Costs and compensation
Before you go further
Questions about this situation
Are alternative lenders regulated?
Alternative lenders include regulated financial institutions and licensed mortgage investment entities. Regulatory status varies by lender, and the specific lender being recommended is always identified to you before you commit.
How much more do alternative mortgages cost?
It depends entirely on the lender, product, equity position, and market conditions at the time. Quoting a figure in advance would be misleading. A specific comparison is prepared for your file before any decision.
Can I move back to a traditional lender later?
Many borrowers do, but it depends on how the intervening term goes — payment history, credit rebuilding, income documentation, and property value. It is a plan, not a promise.
Related situations
Private Mortgage Solutions
Short-term, equity-based financing for specific situations — reviewed honestly, including the exit.
Bruised Credit Mortgages
Understand how past credit events affect mortgage options and what can realistically be done about them.
Self-Employed Mortgages
For business owners, contractors, and commissioned earners whose declared income understates their capacity.
Information on this website is general in nature and is not a commitment to lend, an approval, legal advice, tax advice, or financial advice. Mortgage availability, rates, terms, fees, and approval depend on the applicant, the property, lender requirements, market conditions, and applicable law. An application and supporting documents may be required.