Mortgage Lenders in Canada
- The majority of Canadians still get a mortgage from a bank, but there are other mortgage lenders that may offer more competitive rates or make it easier to qualify for a mortgage.
- Alternative mortgage lenders, including credit unions and mortgage finance companies, are increasingly popular among Canadian homebuyers seeking flexible mortgage solutions.
- Non-bank lenders may provide tailored options for borrowers with non-traditional financial situations.
| Lender type | Best for | Main advantage | Main drawback |
|---|---|---|---|
| Big banks | Borrowers with strong credit, stable income, and existing banking relationships | Brand trust, branch access, bundled banking, and full-service financial products | Stricter qualification rules and not always the lowest rates |
| Credit unions | Borrowers who want local service or more flexible underwriting | Member-focused service, regional knowledge, and potential flexibility | Usually province-specific and may require membership |
| Mortgage finance companies | Prime borrowers using a mortgage broker | Competitive broker-channel rates and mortgage-focused service | Usually accessed through brokers rather than branches |
| B lenders | Self-employed borrowers, bruised credit borrowers, or non-traditional income files | More flexible approvals than banks | Higher rates and lender fees |
| Private lenders | Short-term financing, urgent deals, bad credit, or high-equity borrowers | Fast approvals and flexible underwriting | High rates, fees, and shorter terms |
| MICs | Borrowers needing alternative/private mortgage funding | Can fund deals that banks and B lenders may decline | Higher borrowing costs and usually short-term financing |
Residential Mortgage Balances in Canada (Q1 2026)
Canada’s outstanding residential mortgage market is concentrated among a small number of major lenders. The chart above shows approximately $2.7 trillion in residential mortgage balances, with RBC holding the largest share at $495.8 billion (18.4%), followed by TD at $418.4 billion (15.5%), Scotiabank at $338.0 billion (12.5%), CIBC at $292.8 billion (10.9%), and BMO at $214.7 billion (8.0%).
Desjardins, MCAP, National Bank, and First National Financial are also major players, together accounting for another 20.4% of outstanding balances. Smaller lenders such as MIEs, Nesto/CMLS, Equitable Bank, Manulife Bank, ATB, and Fairstone Bank each hold around 1% of the market or less, while other lenders make up the remaining 8.1%.
This data shows that Canada’s mortgage market remains dominated by the largest banks, but mortgage finance companies, credit unions, and alternative lenders still represent a meaningful share of outstanding mortgage debt.
Where Do Canadians Get Their Mortgages?
While most outstanding Canadian mortgages are held by the largest banks, new mortgage originations show how Canadians are currently choosing between banks, credit unions, mortgage finance companies, trust companies, insurance companies, and mortgage investment entities.
As of September 30, 2025, Canadian lenders issued approximately $220.9 billion in new residential mortgages. Chartered banks remained the largest source of new mortgages, accounting for $154.5 billion, or about 69.9% of new mortgage originations. This includes major banks such as Royal Bank of Canada, TD, Scotiabank, CIBC, BMO, and National Bank.
Credit unions issued $26.8 billion in new mortgages, representing 12.1% of the market. Mortgage finance companies, insurance companies, and trust companies accounted for another $22.5 billion, or 10.2%. Mortgage investment entities made up $17.2 billion, or 7.8% of new mortgage originations.
Overall, the data shows that banks continue to dominate new mortgage lending in Canada. However, non-bank lenders, including credit unions, mortgage finance companies, trust companies, insurance companies, and MIEs, still represent a meaningful share of new mortgage activity, together accounting for about 30.1% of new mortgages.
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Distribution of New Mortgages in Canada
These are member-owned financial institutions that offer mortgages and other banking services.
| Borrower situation | Lender type to consider | Why |
|---|---|---|
| You want the lowest rate | Mortgage finance company, credit union, or broker-channel lender | These lenders may offer more competitive rates than major banks |
| You want branch access | Big bank or credit union | Better for borrowers who prefer in-person service |
| You are self-employed | Credit union, B lender, or alternative lender | These lenders may be more flexible with income verification |
| You have bad credit | B lender or private lender | Approval may be easier, but rates and fees are usually higher |
| You are renewing your mortgage | Bank, credit union, broker, or mortgage finance company | Comparing your renewal offer can help you avoid accepting an uncompetitive rate |
| You need short-term financing | Private lender or MIC | Useful for bridge financing, urgent closings, or temporary credit issues |
| You are new to Canada | Big bank newcomer program, credit union, or alternative lender | Some lenders have programs or underwriting flexibility for newcomers |
| You own an unusual property | Credit union, B lender, or private lender | Non-standard properties may not fit major bank rules |
| You want flexible prepayments | Credit union, bank, or MFC | Prepayment privileges vary widely by lender and mortgage product |
| You need fast approval | Private lender or mortgage broker channel | These options may move faster than traditional branch underwriting |
Canada’s Big Six Banks
Canada’s six largest banks and how much money they have loaned out to people in real estate loans, which includes both mortgages and HELOCs, are:
Looking at just mortgages, these are the balances of outstanding residential mortgages at Canada’s biggest banks:
Currently, the lowest mortgage rate offered by the big 6 banks, namely RBC, Scotiabank, CIBC, TD, BMO, and National Bank, is a 5-year variable rate mortgage at 3.95% by CIBC. The big six banks often don’t have the lowest mortgage rate in the market, but they are still popular choices for mortgage seekers due to their reputation and stability. Here are the lowest mortgage rates offered by the big 6 banks, by term:
As the largest bank in Canada, based on market capitalization, the number of branches, and residential mortgage balances, RBC offers a full range of financial services, including personal and commercial banking, wealth management, and insurance. Established in 1864, RBC has a strong international presence, with operations in 29 countries.
TD’s roots go back to 1855, when the Bank of Toronto was founded. In 1955, the merger of the Dominion Bank and the Bank of Toronto created the Toronto-Dominion Bank, which would then acquire Canada Trust in 2000. TD is known for its excellent customer service, having received the highest customer satisfaction ranking among the big banks in J.D. Power’s studies for multiple years. TD has an extensive branch network across Canada and the United States.
CIBC dates back to 1867 when the Canadian Bank of Commerce was founded, and formed in 1961 from the merger with Imperial Bank of Canada. CIBC offers a variety of financial solutions, including mortgages, investment services, and commercial banking, and it has positioned itself as a leading bank in Canada.
Mortgage Characteristics
With a Remaining Amortization of 25+ Years
Are Mortgage Amortizations Getting Longer?
Longer mortgage amortizations became more common when rising variable mortgage rates pushed some borrowers into extended or negative amortization, while high home prices also encouraged borrowers to choose longer terms to reduce monthly payments.
However, Q1 2026 data shows a clear shift back toward shorter amortizations compared with Q3 2024. In Q3 2024, only about 62% of mortgages at the six major banks listed had a remaining amortization of 25 years or less, while several banks had meaningful shares of mortgages above 35 years or in negative amortization. By Q1 2026, the overall share of mortgages with amortizations of 25 years or less had risen to 70.0% across the major lenders.
Mortgages amortized over 25 to 30 years remained common, making up 26.9% of mortgages in Q1 2026. But very long amortizations have become much less prevalent: mortgages between 30 and 35 years accounted for just 1.0%, while those above 35 years made up 2.2%. Negative amortization was essentially eliminated, representing less than 0.01% of mortgages overall in Q1 2026.
Overall, the data suggests that mortgage amortizations are no longer lengthening in the same way they were in 2024. Instead, the share of mortgages above 25 years has declined, while the most extreme categories, especially negative amortization, have largely disappeared.
Percentage of Mortgages with a Remaining Amortization Over 25 Years
Mortgages Up For Renewal
The Renewal Wave Is Here
As of Q1 2026, an estimated 25.3% of mortgages at major Canadian lenders are set to renew within the next year. That works out to roughly 2.1% of mortgages renewing each month, a much higher pace than the renewal estimates from 2024.
The renewal pressure also extends beyond the next 12 months. Another 24.5% of mortgages are scheduled to renew in 1 to 2 years, meaning nearly 49.8% of mortgages will renew within the next two years. Meanwhile, 39.3% of mortgages renew in 2 to 5 years.
This marks a shift from Q2 2024, when the renewal wave was still mostly ahead. At that time, it was estimated that about 1.28% of Canadian mortgages would renew each month until October 2024, rising to 1.52% per month until April 2025. By Q1 2026, the renewal pipeline has moved into a heavier phase, with roughly one-quarter of mortgages coming due within one year.
Many of these borrowers originally took out or renewed mortgages during the low-rate period of 2020 and 2021. As those terms mature, borrowers may face higher renewal rates than they previously had, which could increase monthly payments and put pressure on household budgets.
% of Mortgages Renewing in 1 & 2 Years
Other Banks in Canada
In addition to the Big Six, Canada boasts a diverse landscape of smaller banks. These chartered banks can also have competitive mortgage rates and serve regional or niche markets.
Founded in 1970, Equitable Bank is Canada’s seventh-largest Schedule I bank. It focuses on flexible lending solutions, particularly for those who may not fit conventional banking criteria. This includes mortgages for borrowers who might be self-employed, have a limited credit history, or are real estate investors.
Established in 1984, the Canadian Western Bank (CWB) has regional roots deep in the western provinces, where it has built strong community ties. CWB has received awards such as Canada’s Top 100 Employers, Mortgage Industry Employer of Choice from the Canadian Mortgage Awards, and awards for Top Alternative Lender by Canadian Mortgage Professional.
Wealth One is a new digital bank, established in 2015, that focuses on providing innovative financial solutions to meet the needs of underserved communities, particularly the immigrant community. Wealth One’s mortgages specialize in borrowers who are self-employed or entrepreneurs, new to Canada, and real estate investors as an ‘Alt-A’ mortgage lender.
Shinhan Bank, founded in 1897, is South Korea's first bank. Shinhan Bank Canada opened in 2009 and now has branches in Ontario and British Columbia.
Mortgages From Credit Unions
Credit Union Membership
Credit unions remain an important part of Canada’s mortgage industry, although their share of mortgage originations has been decreasing based on the total number of loans originated. Credit unions accounted for 16.9% of mortgage originations in Q4 2025, down from 18.3% in Q4 2024 and 21.9% in Q4 2023.
Credit unions’ appeal comes from their member-owned structure and more community-focused approach. They offer many of the same products as banks, including mortgages, chequing and savings accounts, business loans, online banking, and registered savings plans, but profits are generally reinvested into the credit union, returned to members, or used to support local communities.
Another reason some borrowers consider credit unions is underwriting flexibility. OSFI’s B-20 mortgage rules, including the Minimum Qualifying Rate or “stress test,” apply to federally regulated financial institutions. Most credit unions are provincially regulated, which means they are not always subject to the same federal underwriting rules as banks, although many still apply similar internal standards.
This can make credit unions an attractive option for borrowers who may need a more personalized review, such as self-employed borrowers, newcomers to Canada, or those with more complex income or credit profiles. However, credit unions are still regulated financial institutions and must follow their own provincial rules and risk-management standards.
Credit unions generally operate within provincial markets, so borrowers usually need to work with a credit union that serves their province or region. Even so, Canada still has nearly 200 credit unions serving approximately six million members outside the Desjardins network, giving many borrowers access to a local alternative to the major banks.
Notable Credit Unions in Canada
Access Credit Union: Located in Manitoba, Access focuses on providing personalized financial services to its members, emphasizing community support and competitive offerings in personal loans and mortgages. Access also offers competitive savings rates.
Affinity Credit Union: Based in Saskatchewan, Affinity offers a 130-day mortgage rate guarantee. It also covers up to $1,750 in mortgage switching fees, and has multiple mortgage options.
Caisse Alliance: Operating mainly in the French-speaking regions of Northern Ontario, Caisse Alliance has been focused on accessibility and human connection to improve member’s quality of life. Mortgages with Caisse Alliance are eligible for member dividends.
Mortgage Finance Companies (MFCs)
Mortgage Finance Companies (MFCs) are a type of non-bank mortgage lender in Canada. Unlike private mortgage lenders, which aren’t subject to the same regulations as traditional banks and allow for them to have more flexibility in their lending practices, MFCs are subject to federal regulations. That’s because most mortgages MFCs lend out are insured mortgages, including those that use government-backed mortgage insurance by CMHC. You will typically need to work with a mortgage broker to get a mortgage from a MFC.
As a non-bank mortgage lender, Merix specializes in alternative mortgages and offers flexible solutions for borrowers who do not fit the criteria of traditional lenders. This includes allowing flexible down payment sources, non-stress-tested rates, stated income, and rental income offsets.
Private Mortgage Lenders and MICs
Private Mortgage Lenders
Having a credit score of less than 600 can make it difficult to obtain a mortgage, as it is considered a low credit score. This indicates that the borrower may have had trouble managing their credit in the past or currently has financial instability.
Many traditional lenders, such as banks and credit unions, require a minimum credit score of 680 or higher to qualify for a mortgage. Borrowers with a credit score less than 680 may have to seek alternative lending options, which may come with higher interest rates and fees. Examples include B-lenders and private lenders.
Private mortgage lenders are an option that many borrowers with bad credit turn to. These lenders often have more flexible requirements and may be willing to work with borrowers who have a lower credit score, but this usually comes at a higher cost. Many private mortgages are interest-only, which means the borrower is only required to pay the interest on the loan each month and not the principal. This reduces the size of their mortgage payments, but borrowers aren’t building any equity or paying off their loans.
According to the Financial Services Regulatory Authority of Ontario (FSRA), mortgages from private lenders accounted for 15.8% of Ontario mortgages by number of mortgages, which is 12.5% by dollar value.
Private Mortgages in Ontario
Mortgage Investment Corporations
Mortgage Investment Corporations (MICs) are a type of private mortgage lender, and they are gaining popularity in the mortgage industry as an alternative investment option. According to the CMHC, Mortgage Investment Entities (MIEs), which include MICs, accounted for 8% of all new mortgages in Q4 2025 by number of mortgages. That’s comparable to the 8% market share seen in Q4 2020.
MICs allow individual investors to pool their funds together and invest in a portfolio of mortgages managed by professionals, providing diversification and risk management. Popular publicly traded MICs in Canada include Atrium Mortgage Investment Corporation and MCAN Financial Group.
MICs often invest in mortgages with a low LTV ratio, at a higher interest rate.
Popular MIC Mortgage Lenders
Atrium is the largest residential Mortgage Investment Corporation (MIC) based in Canada, focused on providing short-term financing solutions. For residential mortgages, they typically offer terms of 1 year with interest-only payments, for mortgages with a loan-to-value of less than 80% in Southern Ontario and Western Canada. They focus on self-employed borrowers, newcomers, and investors.
Alta West Mortgage Capital Corporation is an alternative mortgage lender that helps borrowers who have been declined by the big banks, such as those with bad credit, who are self-employed, or who are newcomers to Canada. For investors, they offer two managed MIC funds with monthly dividend payments.
MCAN Mortgage Corporation is a mortgage investment corporation that specializes in residential and commercial mortgages. As a mortgage lender, they have over 3,000 brokers across Canada and offer 1, 3, and 5-year fixed mortgage rates and 5-year adjustable rates. MCAN helps mortgage borrowers by allowing alternative income calculations, extended amortization, and higher debt-service ratios.
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Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
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- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.