Non-Prime Mortgages

A non-prime mortgage is designed for borrowers who do not qualify under traditional bank guidelines — due to credit challenges, self-employment income, recent financial difficulty, or non-traditional income sources. At Mortgagefy, non-prime mortgages are one of our core specialties. We work with a network of 100+ lenders, including B-lenders and private lenders who use flexible underwriting criteria focused on equity and overall financial picture rather than just credit scores.

What Is a Non-Prime Mortgage?

Non-prime mortgages — also called alternative or subprime mortgages — are home loans offered to borrowers who fall outside the strict qualification criteria set by federally regulated lenders like the big banks. These lenders focus on your equity position, the property value, and your ability to service the debt rather than requiring perfect credit history or traditional employment verification.

Who Qualifies for a Non-Prime Mortgage?

• Homeowners with credit scores below 600 or recent missed payments
• Borrowers with a recent bankruptcy or consumer proposal (1–2 years discharged)
• Self-employed individuals unable to prove income through traditional means
• Newcomers to Canada without an established Canadian credit history
• Clients with high debt ratios that exceed stress test thresholds
• Investors or borrowers with multiple properties
• Anyone who has been declined by a bank or credit union

Non-Prime Mortgage Rates in Canada

Non-prime mortgage rates are typically higher than prime rates to reflect the increased risk to the lender. B-lender rates typically range from 5.5% to 8%, while private lender rates range from 8% to 14% depending on the loan-to-value ratio and the borrower’s situation. Most non-prime mortgages are short-term (1–2 years) with the goal of transitioning back to a conventional lender once credit and income are re-established.

The Non-Prime Mortgage Strategy

At Mortgagefy, we treat non-prime mortgages as a transitional tool, not a permanent solution. Our agents will help you understand your current situation, find the best available rate and lender today, and build a clear 12–24 month roadmap to qualify for a conventional mortgage with a lower rate. We have helped hundreds of Canadians use non-prime financing as a bridge to better financial health.

Frequently Asked Questions

Will applying hurt my credit score?
We do a soft credit pull for initial assessment — no hard inquiry until you decide to proceed.

How fast can I get approved?
Many non-prime approvals come back within 24–48 hours. Private lender approvals can be even faster — sometimes same-day.

Can I get a non-prime mortgage to stop a power of sale?
Yes. This is one of the most common use cases. A non-prime refinance can pay out arrears and stop a power of sale proceeding quickly. Contact us immediately if you have received a notice.