If you’ve started shopping for a mortgage in Ontario, you’ve probably heard the terms “A lending,” “Alt-B,” and “private lending” thrown around without much explanation. Here’s what each one actually means, and how to tell which lane fits your situation.

A Lending: The Standard Bank Route

A lending is what most people picture when they think of a mortgage: a bank, credit union, or monoline lender offering the lowest available rates to borrowers with strong credit, verifiable income (T4s, NOAs), and a manageable debt load. If you check those boxes, A lending will almost always save you the most money.

Alt-B: For Borrowers Who Don’t Fit the Standard Box

Alt-B, or alternative lending, exists for people who are financially solid but don’t fit a bank’s rigid qualification rules. Common candidates include self-employed borrowers who write off a lot of expenses, people with a recent credit bruise (a missed payment, a consumer proposal that’s since been resolved), or those with non-traditional income like commission or contract work. Alt-B lenders take a more common-sense view of your file, and rates are still competitive, just modestly higher than A.

Private Lending: Equity Does the Talking

Private lending flips the qualification model entirely. Instead of focusing on income and credit, private lenders look primarily at how much equity you have in your home. As a general guideline, most private lenders want to see at least 20% equity. That makes it a fit for homeowners who’ve been declined elsewhere, need funds quickly (many private deals close in 24–48 hours), or are dealing with a temporary income gap, a tax debt, or a looming renewal at a bank that won’t requalify them.

So Which One Is Right for You?

The honest answer is: it depends on your income, credit, and timeline, not on which option sounds best. A quick conversation is usually enough to figure out where you land. Atakan Hasar is a licensed Ontario mortgage agent working across all three tiers — A, Alt-B, and private — for homeowners in Markham, Mississauga, Toronto, and across the GTA. If a bank has said no, or you’re just not sure where you fit, reach out for a free, no-obligation assessment.