Canada’s prime (A-lender) mortgage market is split between the big banks, monoline lenders that do only mortgages, credit unions and a few online and direct options. They lend to the same kind of borrower (good credit, documented income, a standard home) but differ in how you reach them, the products they offer and how much you can prepay. This roundup covers the main names in each group. Lenders for borrowers outside bank criteria are compared separately, and the rest of our lender and broker guides cover brokers, platforms and qualifying in special situations.
Lender types compared
| Lender type | Strengths | Trade-offs | Often suits |
|---|---|---|---|
| Big banks | Branches, full banking relationship, HELOC and readvanceable products | Posted-rate penalties; best rates usually need negotiating | Existing clients, borrowers who want in-person service |
| Monoline lenders | Mortgage-only, often competitive rates for prime borrowers | No branches; reached through a broker | Rate shoppers comfortable with a broker |
| Credit unions | Member-owned, local decision-making | Usually one province or region; membership required | Borrowers in the credit union’s area |
| Online and direct lenders | Online application and service | Less in-person help | Borrowers comfortable doing it all online |
How these fit into the wider lender spectrum is explained in the overview of types of mortgage lenders. Rates change weekly and differ by borrower, so none are listed here: the current mortgage rates page compares them.
Big banks
| Lender | Prepayment privileges | Products worth knowing | Often suits |
|---|---|---|---|
| TD | Up to 15% of the original amount a year as a lump sum, and payments up to 100% higher | Registers mortgages as collateral charges | TD clients |
| RBC | 10% and 10%, or 20% and 20%, depending on the product | RBC Homeline Plan (mortgage combined with a line of credit) | RBC clients, relationship banking |
| Scotiabank | Varies by product | Scotia Total Equity Plan (STEP), a readvanceable mortgage | Borrowers who want a readvanceable plan |
| BMO | 10% to 20% a year, depending on the product | Smart Fixed: a lower rate with fewer options | BMO clients |
| CIBC | 10% and 10%, or 20% and 20%, depending on the product | Also takes Simplii Financial’s mortgage applicants | CIBC clients |
Bank privileges are listed as the lump sum (a share of the original amount) and the payment increase allowed each year. Each bank offers several products, and privileges and features differ among them, so the commitment letter is the final word. Penalties are where banks differ most from monolines: the comparison of a big bank vs a monoline lender shows how a bank’s posted-rate interest rate differential works.
Monoline lenders
Monoline lenders such as First National and MCAP do only mortgages, take no deposits and are reached through mortgage brokers. With no branch network or other products to sell, they compete on rate and terms for prime borrowers.
| Lender | What it is | Prepayment privileges | Access |
|---|---|---|---|
| First National | Non-bank mortgage lender (residential and commercial) | 15% to 20% lump sum and payment increase, by product | Mortgage brokers |
| MCAP | Independent mortgage finance company (non-bank) | 20% lump sum and 20% payment increase on standard products | Mortgage brokers |
| RMG | Monoline lender, part of MCAP | Varies by product | Mortgage brokers |
| CMLS Financial | Mortgage lender and servicer, owned by nesto since 2024 | Varies by product | Mortgage brokers |
The full monoline list, their penalty methods and the trade-offs against a bank are in the big bank vs monoline comparison.
Credit unions
| Credit union | Where it lends | Notes |
|---|---|---|
| Desjardins | Quebec, with a smaller Ontario presence | French-first service, with English available; membership required |
| Meridian Credit Union | Ontario | Full banking suite; membership required |
| Coast Capital Savings Federal Credit Union | Federal credit union, now merged with Prospera and Sunshine Coast Financial | CDIC member |
| Servus Credit Union | Alberta | Member profit-sharing |
Most credit unions are regulated by their province and covered by provincial deposit insurance, and a provincially regulated credit union applies its regulator’s rules on an uninsured mortgage rather than the federal Guideline B-20. The types of lenders overview explains how that affects qualifying.
Online and direct lenders
Tangerine, owned by Scotiabank, offers mortgages with an online application and allows up to a 25% lump sum and a 25% payment increase each year. Simplii Financial no longer issues its own mortgages to new borrowers: it is a division of CIBC and connects applicants with CIBC mortgage specialists, while existing Simplii mortgage holders can still renew through Simplii.
Online brokerages and lenders are reviewed on their own pages; the table gives one line each.
| Platform | What it is | Review |
|---|---|---|
| nesto | Online mortgage lender and brokerage | nesto review |
| True North Mortgage | Mortgage brokerage with an in-house lender (THINK Financial) | True North Mortgage review |
Choosing between a broker, a bank’s own staff and an online platform is covered in the digital mortgage comparison.
B-lenders and private lenders
Borrowers who don’t meet bank criteria, because of credit, income documentation or debt ratios, turn to B-lenders, which charge more and usually work only through brokers; what they are is explained in the guide to alternative mortgage lenders, and the named lenders are compared in the B-lender roundup. Below them, private mortgage lenders lend mainly on equity for short terms at the highest cost.
How to compare lenders
| Factor | What to compare |
|---|---|
| Rate | The same term and type at each lender, and the total cost over the term |
| Prepayment privileges | The lump sum and payment increase allowed each year, and whether they apply to your product |
| Penalty method | How the lender calculates the interest rate differential on a fixed rate |
| Portability | Whether the mortgage can move to a new home, and the time limit |
| Charge type | Standard or collateral charge, which affects switching at renewal |
| Service | Branch, phone or online, and who handles changes |
By situation:
| Situation | Lender type often used |
|---|---|
| Rate is the priority | Monoline through a broker, or a negotiated bank offer |
| Wants branch access | Big bank or credit union |
| First-time buyer | Any A-lender; first-time buyer programs are compared in the first-time buyer lender guide |
| Self-employed | A-lender with two years of returns, or a B-lender; see self-employed mortgages and stated-income programs |
| Credit problems | B-lender through a broker; see the lenders for bad credit |
| Renewing | Compare the renewal offer with other lenders before signing; see the mortgage renewal guide |
Working with a mortgage broker
A mortgage broker can compare offers from several lenders, including monolines that don’t deal with the public directly, and on a standard prime mortgage the lender usually pays the broker; how mortgage brokers get paid explains when a borrower pays a fee instead. Our ranking of the best mortgage brokers in Canada compares the national brokerages, and a bank offer can often be improved by asking, as negotiating a better mortgage rate explains.
Related Resources
Sources
The figures and rules on this page come from these sources, last checked against them on October 5, 2026. How we check facts.
- First National Financial: First National Financial LP | Residential & Commercial Mortgage Lending
- mcap.com: About MCAP | MCAP
- nesto: nesto's Answers to all your mortgage questions - FAQ - nesto.ca
- truenorthmortgage.ca: Careers | True North Mortgage