In Canada, the mortgage lending market is broadly divided into three categories: A Lenders, B Lenders, and Private Lenders. Today, let’s focus on A Lenders.
When people hear “A Lender,” they often only think of the Big Five banks — RBC, TD, Scotiabank, BMO, and CIBC. However, the category of A Lenders goes far beyond just these five.
An A Lender is any financial institution regulated at the federal or provincial level that provides traditional mortgages to borrowers with stable income and strong credit. As long as the lender meets these regulatory and risk control standards, they are classified as an A Lender — even if they are not a traditional bank.
For example, First National, MCAP, RFA, Haventree, Manulife Bank, and Equitable Bank are all considered A Lenders. These institutions are often known as Monoline lenders — lenders that focus solely on mortgages. They don’t offer everyday banking services but are backed by stable funding sources (like insurance companies or institutional investors).
Within the regulatory framework, they can offer rates and terms that are as competitive — or even more competitive — than those of the Big Five banks. Additionally, their approval processes are often more flexible, which can benefit high-quality borrowers with more complex income structures.
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