Credit-challenged
Mortgages after a credit setback in Ontario
Banks and monoline lenders in Ontario look closely at credit history. If your credit history has a mark on it, alternative ("B") lenders may still lend, usually at a higher cost and for a short term, with a plan to move back to a bank lender.
Banks, credit unions and monoline lenders set minimum credit standards; for an insured mortgage, at least one borrower needs a credit score of 600 or more (CMHC). If your credit doesn't meet a bank's rules today, alternative (B) lenders look more at the property and your overall situation and charge more for it. The goal is a short stay with the alternative lender and a planned return to a bank rate. Every option is subject to lender approval.
What your credit report shows
Lenders read each of these credit histories differently. Find the history closest to yours.
You've missed payments or carry high balances
Recent late payments or maxed-out credit cards lower your credit score. Paying down card balances before you apply sometimes changes the lender's answer, so we look at your balances with you first.
You've had a consumer proposal or bankruptcy
Lenders look at how long ago the proposal or bankruptcy ended and how you have rebuilt your credit since. We explain what a bank and an alternative lender will each want to see.
Your credit history is short
If you are new to credit, a short credit history is not the same as bad credit. Some lenders treat a short history differently from missed payments, and we tell you which ones.
The kinds of lender we try, in order
We start with the first kind of lender for every client, and move down the ladder only when the kind above can't help yet.
Banks, credit unions, trust companies and monoline lenders
A bank, credit union, trust company or monoline lender usually costs you least. We start here for every client, and compare more than one lender's offer.
How we compare lenders →Alternative ("B") lenders
We look at alternative lenders when your income, credit or property doesn't fit a bank's rules today. Alternative lenders charge higher rates and fees, often for a shorter term, so we plan your move back to a bank.
When an alternative lender fits →Private money, as a short bridge
We look at a private bridge only when no bank or alternative lender can help yet and there's a clear exit. We refer private requests to Stonefield Capital, our private-lending brand.
When private makes sense →
How we look for a lender after a credit setback, bank first
An honest look first
With your consent, we review your credit report with you and explain, without judgment, what lenders will see.
Bank route if possible
If a bank, credit union or monoline lender can lend to you, that lender usually costs least, so we start there.
Alternative lender if needed
If no bank, credit union or monoline lender can lend to you yet, we compare B lenders. Any lender and broker fees are disclosed in writing before you commit.
Plan the way back
We map out what to rebuild so you can move to a bank lender at renewal.
What documents and details do I need to have ready?
You need no documents for the first call. Once we know which documents your lender needs, you share them through a secure application and never by e-mail.
- Income documents
- Details of any proposal, bankruptcy or collections (dates, discharge papers)
- Your plan for the debts that caused the setback
Questions about mortgages after a credit setback
What credit score do I need for a mortgage?
For an insured mortgage (less than 20% down), at least one borrower needs a score of 600 or more (CMHC). Uninsured lenders set their own minimums. Below those minimums, alternative lenders may still lend at a higher cost.
What is a B lender?
A B lender is an alternative lender, often a trust company, that lends outside the banks' standard rules. Rates and fees are higher, and terms are often one to two years, used as a bridge back to a bank.
Will checking my options hurt my score?
A credit check is done only with your consent. Several mortgage inquiries within a short period are generally treated as one search by the credit bureaus.
Rules described on this page were checked on 2026-10-23. Every mortgage is subject to lender approval. This page is general information, not financial advice.
More questions about mortgages after a credit setback
No cost to talk
Ask a mortgage broker to call you back
Tell us what you're planning for a home in Ontario and a good number to reach you. We call back within one business day, usually sooner. We ask for documents only once we know which ones your mortgage needs.
You can also call us at (416) 371-2077.