This page compares the named B-lenders that Canadian borrowers most often end up with when a bank says no: Equitable Bank, Home Trust, ICICI Bank Canada, Bridgewater Bank, Community Trust and Haventree. A B-lender is an alternative lender, usually a trust company or a smaller bank, that lends to borrowers outside bank criteria at a higher cost; what B-lenders are, who uses them and how their costs work is explained in the guide to B-lender mortgages. It sits alongside our other guides to lenders and brokers.
The B-lenders at a glance
| Lender | What it is | Borrowers it targets | How to apply |
|---|---|---|---|
| Equitable Bank (EQ Bank) | CDIC-member bank; residential mortgages only through mortgage brokers | Self-employed, limited credit history, newcomers, rental investors, foreign income, contract employees | Mortgage broker |
| Home Trust | Alternative lender (Home Trust Company); has announced it is joining forces with Fairstone Bank | Borrowers with bruised credit, self-employed and alternative income | Mortgage broker |
| ICICI Bank Canada | Bank with a newcomer mortgage program | Newcomers who arrived or relocated within the last five years; employed and self-employed applicants | The bank |
| Bridgewater Bank | Schedule I bank owned by the Alberta Motor Association; mortgages through a network of brokers | Near-prime and self-employed borrowers, strongest in Western Canada | Mortgage broker |
| Community Trust | Trust company lending on alternative mortgages | Files with low scores or limited documentation that other B-lenders decline | Mortgage broker |
| Haventree | Alternative lender | Self-employed and bruised-credit borrowers, toward the riskier end of B-lending | Mortgage broker |
Most of these lenders publish their criteria for brokers rather than for borrowers, and they set them program by program. Minimum credit scores, maximum loan-to-value, amortization limits and lender fees change and depend on the file, so they come with the broker’s written quote rather than from a table like this one. Rates move with the market as well: the current mortgage rates page shows the bank benchmark that a B-lender quote sits above.
The lenders
Equitable Bank
Equitable Bank, which also runs the EQ Bank digital brand, is a CDIC-member bank whose residential mortgages are available only through mortgage brokers. Its residential programs are aimed at borrowers “who may not fit into the conventional bank lending box”: the self-employed, people with limited credit history, newcomers to Canada, rental property investors, foreign income earners and contract employees. Its mortgages are portable when the new purchase closes within 90 days of the sale of the existing home.
Home Trust
Home Trust is one of the longest-established alternative lenders in Canada and lends through mortgage brokers to borrowers with bruised credit, the self-employed and those with alternative income. Home Trust and Fairstone Bank have announced that they are joining forces to create a larger alternative lender; the lender of record on a commitment letter is the one that matters for the mortgage.
ICICI Bank Canada
ICICI Bank Canada runs a newcomer mortgage program “to help home buyers who have immigrated or relocated to Canada within the last 5 years to purchase a property.” Its mortgage options are available to both employed and self-employed applicants. Newcomer programs at other banks are compared in mortgages for newcomers.
Bridgewater Bank
Bridgewater Bank is a Schedule I bank founded in 1997 and wholly owned by the Alberta Motor Association. It offers residential mortgages through a select network of brokers and is strongest in Western Canada, with programs for near-prime and self-employed borrowers.
Community Trust
Community Trust is a trust company that lends through brokers and considers files with lower credit scores or limited documentation that other B-lenders turn down, at a higher rate and fee than the lenders above.
Haventree
Haventree lends through brokers toward the deeper end of B-lending, including self-employed borrowers with bank-statement income and borrowers with bruised credit. It is often the step between the larger B-lenders and private lending.
What to compare in a B-lender quote
| Item | Why it matters |
|---|---|
| Interest rate and term | B-lender terms are often one to three years, so the rate applies for less time but renewal comes sooner |
| Lender fee | Many B-lenders charge a one-time fee, usually taken from the mortgage advance |
| Broker fee | On some alternative files the borrower pays the broker as well; how mortgage brokers get paid explains when |
| Prepayment and penalty terms | A plan to move back to a bank at renewal works best if the mortgage can be prepaid or ends without a large penalty |
| Income documents accepted | Full documentation, stated income or bank-statement programs |
| Maximum loan-to-value and amortization | Set by program; a bigger down payment widens the options |
Because most B-lender mortgages are uninsured, the insurer limits for an insured mortgage, such as the GDS and TDS ratios and the insurer’s credit score floor, don’t cap the file the same way; B-lenders set their own debt-ratio limits. Federally regulated B-lenders still apply the mortgage stress test.
When a B-lender is used, and when it isn’t
A B-lender mortgage is commonly used when the reason a bank declined is temporary or fixable: a past credit event the borrower has recovered from, a recent consumer proposal or discharge, or self-employed income that tax returns understate. It works out best when the higher payments are affordable and there is a realistic plan to qualify with a bank at renewal.
It is a weaker fit when the payments only work on a stretch, when credit problems are still building, or when nothing is likely to change by renewal, which can leave a borrower renewing at B-lender rates term after term. When B-lenders decline, private mortgage lenders are the tier below, and borrowers with low scores can compare options by score band in the guide to lenders for bad credit.
How a B-lender application works
Most of the lenders on this page take applications only through mortgage brokers (ICICI Bank Canada’s newcomer program is offered by the bank itself), so the first step is a broker who places alternative mortgages regularly. The broker sends the file to one or more lenders, and the lender’s underwriting looks at credit, income, the property and the reason for any credit problems.
| Document | Purpose |
|---|---|
| Government-issued ID | Identity |
| Proof of down payment, usually recent bank statements | Source of funds; what lenders look for in bank statements |
| An employment letter or business documents | Income |
| T1 returns and notices of assessment, where available | Reported income |
| Several months of business or personal bank statements | Cash flow for bank-statement programs |
| Purchase agreement | The property and price |
| Appraisal | Ordered by the lender, usually at the borrower’s cost |
Conditions such as extra documents or a letter explaining past credit problems are common before the commitment is final, and lender fees are usually deducted from the advance on closing.
Moving back to an A-lender
Most borrowers treat a B-lender term as a step. On-time payments, lower credit card balances and two years of tax returns that show the real income are what move a file back to a bank at renewal; the stage-by-stage path is set out in the B-lender guide, and the credit-rebuilding ladder in the guide to lenders for bad credit. Prime lenders are compared in the roundup of the best mortgage lenders in Canada.
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them on October 5, 2026. How we check facts.
- bridgewaterbank.ca: Bridgewater Bank
- eqbank.ca: Mortgage Products