Lenders in Ontario sort applications into rough tiers, and your credit score is the first sorting key. It does not decide everything, but it decides who is willing to look at the rest of your file.
The three lender types
- Top credit scores put A lenders, such as the major banks and credit unions, within reach, usually with the widest choice of terms and features.
- If your score sits in the middle range, B lenders may be the fit. They work with past hiccups or complex income, usually with stricter conditions.
- Private lenders step in when scores are lower or traditional paperwork is a problem. They focus more on the property's value than on your credit.
- Your score can change the down payment a lender asks for, with stronger credit often opening up more options.
- Improving your credit before you apply can widen your range of choices and reduce the overall cost of borrowing.
- Whatever the lender type, Ontario's rules on suitability and disclosure apply, so every option should be explained to you before you sign.
- A mortgage agent's job is to match your file to the right lender type, explain the product differences and keep the process moving.
Where to go from here
If your credit is strong, a pre-approval confirms where you stand with A lenders. If it is bruised, self-employed income or a recent arrival in Canada is part of the picture, the other services page covers B lender and alternative files, and private mortgages explains when a short-term private loan makes sense and how you exit it.
This article is general information, not financial advice, and quotes no rates. Your situation may differ; speak with a licensed mortgage professional.