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Why "best bank" is the wrong question
Mortgage lenders do not compete to be best in general. They compete for particular kinds of borrower, and each one has an underwriting policy that says yes to some files and no to others. The lender that gives your neighbour the lowest rate may decline you outright, and the lender that approves you may be one you have never heard of. So the useful question is not which bank is best. It is which kind of lender takes a file like yours, and then which of those offers the best terms.
The four types of mortgage lender
- Big banks. Lowest rates for straightforward files, the strictest policy, and no discretion on the federal stress test. Best when your income is salaried, your credit is strong and your down payment is conventional.
- Credit unions. Provincially regulated, which gives some room the big banks do not have on how they treat self-employment and unconventional income. Competitive rates, membership required, and decisions take days.
- Monoline lenders. Mortgage-only lenders with no branches, reached through brokers. They frequently beat bank rates because lending is all they do. The trade-off is that you deal with a broker rather than a branch, and their penalty and prepayment terms deserve reading closely.
- B-lenders and private lenders. Built for files the first three decline: self-employment with limited paperwork, bruised credit, unusual properties. Rates are higher and terms shorter, and the usual plan is to move to an A-lender within a few years once the file is stronger.
A broker sees all four. If your file is straightforward you may do better going direct to a bank you already hold accounts with; if it is not, a broker knows which lender takes it, which is most of the value.
If you are salaried with strong credit
You are the file every lender wants, which means you should be shopping on price rather than approval. Get a quote from your own bank, since existing customers are often discounted, then a broker quote covering the monolines. Compare the rate, but also the prepayment privileges and the penalty calculation, since a low rate with a punitive penalty costs more if you move or refinance mid-term.
If you are self-employed
The problem is not your income, it is how it is documented. Business owners who minimise taxable income look weaker on paper than they are, and big banks lend on the paper. Two years of filed returns and notices of assessment open the bank channel. Without them, credit unions and monolines are more flexible, and B-lenders will work from bank statements at a higher rate.
What helps concretely: consistent deposits, a clean business account, and filed returns even in years where the income was low. What hurts: unfiled taxes, and income that appears only as retained earnings.
If your credit is bruised
Bruised credit narrows the field to credit unions, some monolines and B-lenders, and it raises the rate rather than closing the door. A larger down payment offsets a great deal; twenty percent or more changes the conversation with most lenders. Explanation matters here in a way it does not at a bank: a documented one-off event reads differently from a pattern, and a lender applying judgement will consider it.
If you are more than a few months from applying, the cheapest thing you can do is bring card balances down and let the file age. Our guide to how to rebuild credit in Canada covers the order to do that in.
If you are new to Canada
The obstacle is a thin Canadian credit file rather than your finances. Several lenders run newcomer programmes that accept foreign credit references, a larger down payment or a shorter Canadian history, and the big banks are competitive here because newcomer mortgages are a channel they actively want. Permanent residents generally have more options than temporary residents, and the down payment expected rises as the status gets less permanent.
If you need a high-value mortgage
Two things change as the price rises. Mortgage default insurance is available only where the purchase price or lending value is below $1,500,000, so above that line you need at least twenty percent down as a rule rather than a preference. And the file is underwritten individually rather than by policy, which means the lender looks harder at income stability, other assets and total exposure.
Below that line the down payment rules are set rather than negotiated: five percent on the first $500,000, and ten percent on the portion above $500,000. That steps the minimum up well before you reach the insurance ceiling.
That individual underwriting is why high-value borrowers often do better with a bank they already have a relationship with, or through a broker who can place the file with a lender comfortable at that size. Rates are not automatically higher; what is higher is the scrutiny and the documentation. Expect to evidence income more thoroughly than a smaller file would require, and expect the process to take longer.
On multi-unit and investment property at scale, the underwriting shifts again toward the property's income rather than yours, which is a different product from a residential mortgage.
How to compare once you know your type
- Compare the rate against the term you will actually keep. A five-year fixed at a lower rate costs more than a three-year at a higher one if you break it in year three.
- Read the penalty calculation. Interest rate differential penalties at some lenders run into five figures. This is the single largest hidden cost in a Canadian mortgage.
- Check the prepayment privileges. How much can you pay down each year without penalty, and can you increase the payment.
- Ask whether the mortgage is portable and assumable. Both matter if you might move before the term ends.
- Get the rate held in writing. Rate holds run 90 to 120 days and cost nothing.
| Lender | Amount | Rate | Speed | |
|---|---|---|---|---|
| 8Twelve Mortgage | $50,000 to $10,000,000 | 4.09% APR | about 7 business days | See if you qualify |
| Lotly | $15,000 to $10,000,000 | 6 to 16% APR | about 7 business days | See if you qualify |
| Nuborrow | $20,000 to $100,000,000 | 4.99% APR | about 2 business days | See if you qualify |
| Canadalend.com | $20,000 to $10,000,000 | 4.99% APR | about 7 business days | See if you qualify |
| Clover Mortgage | $50,000 to $100,000,000 | 4.09% APR | about 2 business days | See if you qualify |
| Homewise | $50,000 to $10,000,000 | 4.99% APR | about 7 business days | See if you qualify |
| nesto | $50,000 to $10,000,000 | 4.04% APR | about 2 business days | See if you qualify |
One application compares the lenders we list against your situation rather than against an average borrower.
Frequently asked questions
Which bank is easiest to get a mortgage from in Canada?
Among traditional institutions, credit unions, because they apply judgement to a file rather than policy alone. Among all lenders, B-lenders approve the widest range at higher rates. No big bank is much easier than another; they apply the same stress test and similar policy.
What are jumbo mortgage lenders in Canada?
Canada has no formal jumbo category the way the United States does. What exists is high-value lending above the line where default insurance stops being available, currently a purchase price of $1,500,000, which requires twenty percent down and individual underwriting. Big banks, credit unions and some monolines all lend there; the file is assessed on its own merits rather than against a product tier.
Is a mortgage broker better than going to a bank?
For a straightforward salaried file with an existing bank relationship, going direct is often competitive. For self-employment, bruised credit, newcomer files or high-value properties, a broker is usually better because they can place the file with a lender that wants it rather than arguing with one that does not.
Do all Canadian lenders use the stress test?
Federally regulated lenders must qualify an uninsured mortgage at the greater of your contract rate plus two percent or 5.25 percent. Provincially regulated credit unions are not bound by it in the same way, which is one reason they can approve files a bank declines.
Sources
- Office of the Superintendent of Financial Institutions, Minimum qualifying rate for uninsured mortgages: the greater of the contract rate plus 2 percent or 5.25 percent. Verified 2 September 2026.
- Canada Mortgage and Housing Corporation, general requirements for homeowner mortgage loan insurance: purchase price or lending value must be below $1,500,000, with minimum down payments of 5 percent to $500,000 and 10 percent on the portion above. Verified 2 September 2026.
Related reading: which banks are easiest to get a loan from and mortgages versus home equity loans.
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The Smarter Loans Editorial Team produces in-depth, original content to help Canadians navigate borrowing, credit, and personal finance with confidence.
