If the big banks have said no to your mortgage application, you still have options. Alternative and private lenders in British Columbia offer flexible mortgage solutions for people who may not qualify through traditional channels.
Whether you are self-employed, have challenged credit, are newly divorced, or need short-term financing, this guide will help you understand how alternative and private lending works — and how it can help you achieve your homeownership or refinancing goals.
What Is Alternative Lending?
Alternative lending refers to mortgages offered by lenders outside the major banks. These lenders follow more flexible approval guidelines and consider a wider range of income sources and credit situations.
Alternative lenders include:
- Trust companies
- Mortgage finance companies
- Credit unions
They offer competitive rates and terms but usually require a larger down payment or equity position.
What Is Private Lending?
Private lenders are individuals or companies that lend their own money through secured mortgage loans. These loans are typically short-term (6 to 24 months) and are based more on the value of the property than on the borrower’s income or credit.
Private lending is often used when:
- You need quick access to funds
- You're in a high-risk situation (foreclosure, etc.)
- You have poor or no credit
- Traditional lenders have declined your application
Who Are These Options Best For?
Alternative and private mortgages may be a good fit for:
- Self-employed individuals with non-traditional income
- Borrowers with recent credit issues or low credit scores
- Newcomers to Canada with limited credit history
- Individuals going through divorce or separation
- Real estate investors or those with complex portfolios
What Are the Key Differences?
While traditional lenders rely heavily on credit scores, income verification, and strict debt-to-income ratios, alternative and private lenders are more flexible.
Alternative lenders may accept stated income or bank statements instead of full tax documents. They might overlook past credit issues if your current finances are strong.
Private lenders place even more weight on the property itself and the equity you have. They are often more expensive but can approve deals quickly, even when others won’t.
What Are the Costs?
Compared to traditional mortgages, alternative and private lending usually comes with:
- Higher interest rates
- Setup fees or lender fees
- Shorter terms
- Legal and appraisal fees
The trade-off is that you gain access to financing when other doors are closed. Many borrowers use these options as a stepping stone — not a long-term solution.
How a Mortgage Broker Helps
As a mortgage broker, I have access to several alternative and private lenders across BC to help you:
- Understand if this type of financing is right for you
- Access competitive rates and terms
- Compare short- and long-term impacts
- Plan a path back to traditional lending
We will work together to make sure you’re not just getting approved, but that your mortgage is aligned with your financial goals.
Final Thoughts
If you have been told you can’t get a mortgage, don’t give up. Alternative and private lenders offer flexible, short-term solutions when the banks say no. The key is having the right guidance.
Let’s talk. I can help you explore all your options and build a plan that works for your situation now — and sets you up for the future.